Bernard, Andrew B.; Redding, Stephen J.; Schott, Peter K. - C.E.P.R. Discussion Papers - 2003
theoretical model incorporates heterogeneous firms, heterogeneous products, and ongoing entry and exit. In equilibrium, firm … fixed costs. Changes in market structure result in systematic patterns of firm entry/exit and product switching. … productivity is correlated with product fixed costs, with the most productive firms choosing to make the products with the highest …