homogeneous products


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homogeneous products

any identical goods offered in a market by competing suppliers. Given complete knowledge, buyers will regard the products as perfect substitutes for one another and will have no ‘preference’ for the products of particular suppliers. Homogeneity results in all suppliers having no ability to charge other than a common price for their products.

See PERFECT COMPETITION, PRODUCT DIFFERENTIATION.

References in periodicals archive ?
The question that this raises is whether a manufacturer should encroach on the retail market by selling different-quality products with softened competition or providing homogeneous products with higher competition (i.e., which strategies provide higher sales and profits for the manufacturer under what type of market conditions?) and whether the retailer prefers to interact with a manufacturer who encroaches on the retail market by selling different-quality products or by offering homogeneous products (i.e., which strategies would be profitable for the retailer under what type of market conditions?).
Formally demonstrating the existence of coordination failure underinvestment in the increasing marginal costs model is simply a matter of invoking the equivalence under quantity competition, observed by Vives (1990), between differentiated products with constant marginal costs and homogeneous products with increasing marginal costs, let inverse demand for the homogeneous good be
"In general," say the authors, "the degree of substitutability was higher for homogeneous products (petroleum is an apt example) than for highly differentiated products."
Further, this pattern holds for both differentiated and homogeneous products. As a control, the authors also examine indirect exports to China via Singapore, another entrepot with less scope for evasion; there is no correlation between indirect export rates and tariff rates in this case.
Companies with homogeneous products and labor-intensive operations gain little from ABC.
This technique works well for products that are a little outside your general merchandise concept or for homogeneous products that logically can be separated from the general catalog.
As an alternative, homogeneous products without solid particles undergo sterile filtration prior to being fed into the operating vessel in case some components are sensitive to temperature and deteriorate when heated.
Wherever possible, HMR producers have installed vertical form and fill packagers for homogeneous products, such as cut salads.
In this review, Bertrand argued that Cournot's equilibrium for duopoly was not a true equilibrium because "whatever the common price adopted, if one of the owners, alone, reduces his price, he will, ignoring any minor exceptions, attract all of the buyers, and thus double his revenue if his rival lets him do so" [Bertrand, 1883].(1) It is now textbook-commonplace that, for homogeneous products, if each rival assumes that the other rival will let him do so, this type of rivalry would lead to the competitive result of price set equal to marginal cost.
In this world view, unless there are numerous buyers and sellers of homogeneous products under conditions of near full information (a condition that rarely or virtually never occurs in the real world), monopolists, or oligopolists or "imperfect competitors" will raise prices and reduce quantities offered for sale.
They examine both industries with free and restricted entry.(1) However, to accomplish this task they restrict their analysis to homogeneous products, linear demand curves, constant marginal costs, and Cournot competition.