Abstract Consumers achieve greater welfare effects from differentiated commodities consumption than from non-differentiated commodities. Differentiation can weaken the law of diminishing marginal utility and enhance consumers’ welfare level by providing consumers with better choices and stimulating new desires. With the upgrading of the level of per capita income, it is becoming an important path to promote social welfare continuously by enriching the types of differentiated commodity and optimizing the matching structure of consumer demand.
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Received: 11 June 2010
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