theory, modelsI’m interested in economics but have no formal training. I’m looking for some help with terminology, understanding what certain kinds of things are called by economists.
With regards to supply and demand, it seems to me that there is a spectrum from non-uniqueness to uniqueness:
At one end you have things like silver and gold, which are totally interchangeable and non-unique. I know these are called commodities.
In the middle you have things like Nike’s and iPads, where there is uniqueness and brand identity, but the supply is also fairly high and for any particular shoe or iPad there are many identical copies.
At the other end you have things like famous artworks, like Jackson Pollock #5, or the Mona Lisa, which are totally unique and irreplaceable.
My question is:
Is this an established economic idea with a name?
If totally non-unique goods are “commodities” what do you call things like iPads, and what do you call things like rare artworks?
I appreciate any input, and especially links to further reading. Thanks!
Within markets, commodities are basic industrial inputs (aluminium, copper) or agricultural outputs (wheat), or energy vectors (oil, electricity).
Within economics, commodities are any completely fungible good or service. They tend to have well-developed global markets, with derivatives. Any good or service that is not a commodity, is a differentiable product.
The term you are looking for is called "product differentiation" (see: wikipedia)
Uniqueness is a separate quality from differentiation--it simply characterizes the supply. The degree of differentiation is characterized by the degree of substitutability. For example, every Major League Sporting event is unique, one-of-a-kind, and impossible to be duplicated, and yet most consumers would consider a Red Sox-Yankees game on a Friday night to be a very close substitute for a Red Sox-Yankees game on Saturday afternoon.
Another related idea is monopolistic competition, where different firms produce products that are close but not perfect substitutes, like tablets. Another simple example is the case of identical services produced in different places.
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