Multi-product firms at home and away: Cost- versus quality-based competence
We develop a new model of multi-product firms which invest to improve the perceived quality of both their individual products and their brand. Because of flexible manufacturing, products closer to firms' core competence have lower costs, so firms produce more of them, and also have higher incen...
| Main Authors: | , , , |
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| Format: | Book |
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Elsevier
2014
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| _version_ | 1797074852796956672 |
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| author | Eckel, C Iacovone, L Javorcik, B Neary, J |
| author_facet | Eckel, C Iacovone, L Javorcik, B Neary, J |
| author_sort | Eckel, C |
| collection | OXFORD |
| description | We develop a new model of multi-product firms which invest to improve the perceived quality of both their individual products and their brand. Because of flexible manufacturing, products closer to firms' core competence have lower costs, so firms produce more of them, and also have higher incentives to invest in their quality. These two effects have opposite implications for the profile of prices. Mexican data provide robust confirmation of the model's key prediction: firms in differentiated-good sectors exhibit quality-based competence (prices fall with distance from core competence), but export sales of firms in non-differentiated-good sectors exhibit the opposite pattern. |
| first_indexed | 2024-03-06T23:42:13Z |
| format | Book |
| id | oxford-uuid:6fb63cf4-b714-4c87-a49d-581b33606a69 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T23:42:13Z |
| publishDate | 2014 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:6fb63cf4-b714-4c87-a49d-581b33606a692022-03-26T19:32:23ZMulti-product firms at home and away: Cost- versus quality-based competenceBookhttp://purl.org/coar/resource_type/c_1843uuid:6fb63cf4-b714-4c87-a49d-581b33606a69Symplectic Elements at OxfordElsevier2014Eckel, CIacovone, LJavorcik, BNeary, JWe develop a new model of multi-product firms which invest to improve the perceived quality of both their individual products and their brand. Because of flexible manufacturing, products closer to firms' core competence have lower costs, so firms produce more of them, and also have higher incentives to invest in their quality. These two effects have opposite implications for the profile of prices. Mexican data provide robust confirmation of the model's key prediction: firms in differentiated-good sectors exhibit quality-based competence (prices fall with distance from core competence), but export sales of firms in non-differentiated-good sectors exhibit the opposite pattern. |
| spellingShingle | Eckel, C Iacovone, L Javorcik, B Neary, J Multi-product firms at home and away: Cost- versus quality-based competence |
| title | Multi-product firms at home and away: Cost- versus quality-based competence |
| title_full | Multi-product firms at home and away: Cost- versus quality-based competence |
| title_fullStr | Multi-product firms at home and away: Cost- versus quality-based competence |
| title_full_unstemmed | Multi-product firms at home and away: Cost- versus quality-based competence |
| title_short | Multi-product firms at home and away: Cost- versus quality-based competence |
| title_sort | multi product firms at home and away cost versus quality based competence |
| work_keys_str_mv | AT eckelc multiproductfirmsathomeandawaycostversusqualitybasedcompetence AT iacovonel multiproductfirmsathomeandawaycostversusqualitybasedcompetence AT javorcikb multiproductfirmsathomeandawaycostversusqualitybasedcompetence AT nearyj multiproductfirmsathomeandawaycostversusqualitybasedcompetence |