{"id":27505,"date":"2025-04-07T15:00:00","date_gmt":"2025-04-07T13:00:00","guid":{"rendered":"https:\/\/www.munich-business-school.de\/insights\/?p=27505"},"modified":"2025-04-04T15:59:24","modified_gmt":"2025-04-04T13:59:24","slug":"variety-makes-markets-a-little-easter-lesson-in-economics","status":"publish","type":"post","link":"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/","title":{"rendered":"Variety Makes Markets \u2013 A Little Easter Lesson in Economics"},"content":{"rendered":"\n<p><strong>Every year, it\u2019s the same familiar scene: no sooner is Carnival over than supermarket shelves begin to overflow with chocolate Easter bunnies. Not just one, not five but dozens. Some are sitting, some standing, some smile cheerfully, while others stare elegantly into the distance. You\u2019ll find them in milk chocolate, dark chocolate, white chocolate, lactose-free, vegan, or filled. Their names range from Gold Bunny to Schmunzelhase, Vegan Bunny, or simply Easter Bunny.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>But why, really? Isn\u2019t one bunny enough? Or maybe two?<\/p>\n\n\n\n<p>The short answer: no \u2013 and for several economically interesting reasons. This colorful variety isn\u2019t just charming, it\u2019s also rational. It\u2019s the result of consumer preferences, strategic product policy, and structural characteristics of the market. In this post, we\u2019ll take an economic look beneath the shiny foil of the chocolate bunny.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">We Love Variety<\/h2>\n\n\n\n<p>In economics, there are two core theoretical approaches to explain consumers\u2019 desire for product variety: the <em>Ideal Variety Approach<\/em> and the concept of <em>Love of Variety<\/em>. Both are intuitive but they describe different motives.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"1000\" src=\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Osterhasen-aus-Schokolade.jpg\" alt=\"\" class=\"wp-image-27451\" style=\"width:404px;height:auto\" srcset=\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Osterhasen-aus-Schokolade.jpg 1400w, https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Osterhasen-aus-Schokolade-800x571.jpg 800w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n<\/div>\n\n\n<p>According to the <em>Ideal Variety Approach<\/em>, we all have a mental image of a product that best matches our preferences. The more product variants a market offers, the more likely it is that we\u2019ll find one that comes close to our ideal. At Easter, this might mean one person prefers a dark, elegantly styled bunny, while another wants a large, colorful one with nuts. Variety allows everyone to find something that suits their personal taste.<\/p>\n\n\n\n<p>The second approach goes beyond individual preferences. <em>Love of Variety<\/em> suggests that we appreciate diversity <em>as such<\/em>. It\u2019s not just about finding the one perfect product, but about novelty, experience, and symbolism. We don\u2019t buy one chocolate bunny, we buy several, because it\u2019s fun to try different things and to give something special to different people. A classic Gold Bunny for a partner, a funny Schmunzelhase for the kids, and maybe a slightly boozy one for the grandparents. Variety doesn\u2019t just generate individual utility, it also serves social rituals, symbolic meanings, and aesthetic expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Firms Need Variety<\/h2>\n\n\n\n<p>So much for the consumer side. But why do companies go along with this? Wouldn\u2019t it be easier \u2013 and cheaper \u2013 to just offer a standard bunny?<\/p>\n\n\n\n<p>The answer lies in market structure. The chocolate bunny market at Easter is a textbook case of a differentiated oligopoly: a few large suppliers (e.g. Lindt, Ferrero, or Nestl\u00e9) dominate the market and they compete less on price than on product features.<\/p>\n\n\n\n<p>Let\u2019s imagine all chocolate bunnies were identical: same size, same chocolate, same packaging. If Lindt sold its bunny for \u20ac3.00 and Ferrero offered the same for \u20ac2.90, we\u2019d naturally choose the cheaper one \u2013 why pay more than necessary? The higher price would be immediately uncompetitive. Lindt would have to lower its price to \u20ac2.89 and Ferrero would respond. This undercutting would continue until the price just covers production costs and no further. In economics, this is known as the Bertrand Paradox, which shows that pure price competition with homogeneous products is ruinous for firms.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"1000\" src=\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Standosterhasen.jpg\" alt=\"\" class=\"wp-image-27487\" style=\"width:433px;height:auto\" srcset=\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Standosterhasen.jpg 1400w, https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Standosterhasen-800x571.jpg 800w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n<\/div>\n\n\n<p>That\u2019s precisely why companies strive to make their products unique. Through clever product differentiation \u2013 design, packaging, flavor, branding, or advertising \u2013 they transform what is essentially a homogeneous good (chocolate in bunny form) into an emotionally charged, individually meaningful product.<\/p>\n\n\n\n<p>Lindt\u2019s Gold Bunny is a good example: it\u2019s not cheaper than others but quite the opposite. However, it\u2019s associated with quality, tradition, and exclusivity. This differentiation acts as a shield against price competition. Many consumers no longer compare prices alone, but also consider the brand image, tradition, or packaging and willingly pay more.<\/p>\n\n\n\n<p>In this way, producers escape the Bertrand trap and manage to earn solid margins even in a tightly contested market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Toast to Variety!<\/h2>\n\n\n\n<p>The colorful world of Easter chocolate bunnies isn\u2019t just sweet, it\u2019s also educational. It shows how companies in oligopolistic markets can protect profits through differentiation and how we as consumers partly benefit (even if it\u2019s not cheap).<\/p>\n\n\n\n<p>Here, variety isn\u2019t excess, it\u2019s a market equilibrium between strategic supply and diverse preferences. And perhaps that\u2019s also a small metaphor for Easter itself: it\u2019s not about finding <em>the one right thing<\/em> but about celebrating coexistence in diversity.<\/p>\n\n\n\n<p>With that in mind: <strong>Happy Easter and good luck choosing your bunny!<\/strong><\/p>\n\n\n\n<br>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>Every year, it\u2019s the same familiar scene: no sooner is Carnival over than supermarket shelves begin to overflow with chocolate Easter bunnies. Not just one, not five but dozens. Some are sitting, some standing, some <a class=\"mh-excerpt-more\" href=\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\" title=\"Variety Makes Markets \u2013 A Little Easter Lesson in Economics\">[&#8230;]<\/a><\/p>\n<\/div>","protected":false},"author":51,"featured_media":27475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2259,1859,2253,1987,5610,1727,7136,1579,7132,2336,1539,2288,1623],"tags":[11745,13555,10790,10794,7851,13561],"coauthors":[8442],"class_list":["post-27505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bachelor","category-bachelor-international-business","category-business-topics","category-faculty-research","category-homepage-en","category-master-sports-business-and-communication","category-master-innovation-and-entrepreneurship","category-master-international-business","category-master-international-marketing-and-brand-management","category-mbs","category-mbs-business-blog","category-mbs-campus-community","category-mbs-news-en","tag-business-administration","tag-chocolate","tag-easter","tag-easter-bunny","tag-economy","tag-variety"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Variety Makes Markets \u2013 A Little Easter Lesson in Economics<\/title>\n<meta name=\"description\" content=\"Supermarket shelves are filled with many varieties of chocolate bunnies around Easter. 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Isn&#039;t one or two varieties enough?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\" \/>\n<meta property=\"og:site_name\" content=\"Munich Business School Insights\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Munich.Business.School\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-07T13:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Vielfalt-macht-Maerkte.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Prof Dr. Florian Bartholomae\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@MunichBSchool\" \/>\n<meta name=\"twitter:site\" content=\"@MunichBSchool\" \/>\n<meta name=\"twitter:label1\" content=\"Verfasst von\" \/>\n\t<meta name=\"twitter:data1\" content=\"Prof Dr. Florian Bartholomae\" \/>\n\t<meta name=\"twitter:label2\" content=\"Gesch\u00e4tzte Lesezeit\" \/>\n\t<meta name=\"twitter:data2\" content=\"5\u00a0Minuten\" \/>\n\t<meta name=\"twitter:label3\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data3\" content=\"Prof Dr. Florian Bartholomae\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\"},\"author\":{\"name\":\"Prof Dr. Florian Bartholomae\",\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/#\/schema\/person\/ba72d1b41ebf3c1dd5d93d25d9d750bf\"},\"headline\":\"Variety Makes Markets \u2013 A Little Easter Lesson in Economics\",\"datePublished\":\"2025-04-07T13:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\"},\"wordCount\":739,\"publisher\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Vielfalt-macht-Maerkte.jpg\",\"keywords\":[\"Business Administration\",\"chocolate\",\"Easter\",\"Easter bunny\",\"Economy\",\"Variety\"],\"articleSection\":[\"Bachelor\",\"Bachelor International Business\",\"Business Topics\",\"Faculty &amp; Research\",\"Homepage EN\",\"Master IB | Sports Management and Media\",\"Master Innovation and Entrepreneurship\",\"Master International Business\",\"Master International Marketing and Brand Management\",\"MBS\",\"MBS Business Blog\",\"MBS Campus &amp; Community\",\"MBS News\"],\"inLanguage\":\"de\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\",\"url\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/\",\"name\":\"Variety Makes Markets \u2013 A Little Easter Lesson in Economics\",\"isPartOf\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.munich-business-school.de\/insights\/en\/2025\/variety-makes-markets-a-little-easter-lesson-in-economics\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.munich-business-school.de\/insights\/wp-content\/uploads\/2025\/04\/Vielfalt-macht-Maerkte.jpg\",\"datePublished\":\"2025-04-07T13:00:00+00:00\",\"description\":\"Supermarket shelves are filled with many varieties of chocolate bunnies around Easter. 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Florian Bartholomae ist Professor f\u00fcr Volkswirtschaftslehre an der Munich Business School. Seine Forschungsschwerpunkte liegen im Bereich der \u00d6konomie der Informationsgesellschaft und der Regional\u00f6konomie. An der MBS unterrichtet er die volkswirtschaftlichen und mathematischen Grundlagenveranstaltungen im Bachelor sowie fortgeschrittene volkswirtschaftliche F\u00e4cher im Master. Zudem ist er Privatdozent am Institut f\u00fcr \u00d6konomie und Recht der globalen Wirtschaft an der Universit\u00e4t der Bundeswehr M\u00fcnchen sowie Partner der Politikberatung Bartholomae &amp; Schoenberg Partnerschaft. 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