Interest in the theoretical and empirical analysis of multi-product enterprises is growing. This paper uses newly available representative longitudinal data covering the years 1995 to 2004 to document for the first time the extent of product diversification in German manufacturing enterprises...

This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and...