Price and Quality Dispersion in an Offshoring Market : Evidence from Semiconductor Production Services
We study cross-country differences in price and quality in the market for semiconductor wafer manufacturing services. Using a proprietary transaction-level data set, we document i) substantial constant-quality price differences across suppliers, and ii) shifts toward lower priced suppliers. Chinese producers on average charged 17% less than leading Taiwanese producers for otherwise identical products and increased their market share by 14.7 percentage points. The extent of cross-country price dispersion is also diminishing over a product's life. A model with costs of switching suppliers is consistent with these pricing dynamics and can sustain realistic quality-adjusted price dispersion
Year of publication: |
2013
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Authors: | Byrne, David M. |
Other Persons: | Kovak, Brian (contributor) ; Michaels, Ryan (contributor) |
Publisher: |
[2013]: [S.l.] : SSRN |
Subject: | Schätzung | Estimation | Auslandsverlagerung | Offshoring | Preisdifferenzierung | Price discrimination | Halbleiterindustrie | Semiconductor industry | Preisindex | Price index | Produktqualität | Product quality | Welt | World | Vorleistungen | Intermediate goods | Theorie | Theory |
Saved in:
freely available
Extent: | 1 Online-Ressource (56 p) |
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Series: | FEDS Working Paper ; No. 2013-06 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 21, 2012 erstellt |
Other identifiers: | 10.2139/ssrn.2244500 [DOI] |
Classification: | L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; F14 - Country and Industry Studies of Trade ; f61 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013083906