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We develop a new model of quality to capture the idea that even if a customer chooses to purchase a product, it may fail to deliver.' In this event, the customer may wish to choose some other product. We model this as a two stage game where firms first choose quality and then price. We find that...
Persistent link: https://www.econbiz.de/10013222059
We develop a two-country model of endogenous innovation and imitation in order to study the interactions between these two processes. Firms in the North race to bring out the next generation of a set of technology-intensive products. Each product potentially can be improved a countably infinite...
Persistent link: https://www.econbiz.de/10013235883
This essay reviews the theoretical and empirical literature on quality disclosure and certification. After comparing quality disclosure with other quality assurance mechanisms and describing a brief history of quality disclosure, we address three key theoretical issues: (i) Why don't sellers...
Persistent link: https://www.econbiz.de/10013148872
We study the relation between product quality and worker quality using an economic model that, under certain conditions, provides a direct link between product price, product quality and work force quality. Our measures of product quality are the evolution in the detailed product price relative...
Persistent link: https://www.econbiz.de/10013227755
quality upgrading is an important motive for vertically integrating. Firms integrate suppliers when the quality premium … integration changes suppliers' production behavior. A given supplier's actions are less geared towards increasing quantity and …-per-kilo buyers. Finally, we show that firms and individual plants that use integrated suppliers at the time of production ultimately …
Persistent link: https://www.econbiz.de/10012945154
network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different … locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down the …
Persistent link: https://www.econbiz.de/10013024518
under competition with non-deceptive counterfeiting and deceptive counterfeiting, respectively, as well as under monopoly …
Persistent link: https://www.econbiz.de/10013064590
at which they upgrade the quality of their products. We analyze the effect of import competition on quality upgrading …
Persistent link: https://www.econbiz.de/10013070597
impact of low-wage competition on U.S. manufacturing employment and output. Markets characterized by relatively shorter … quality ladders are associated with larger employment and output declines resulting from low-wage competition …
Persistent link: https://www.econbiz.de/10013157761
(QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find … a high proportions of quality-competition goods for the major EU countries and lower proportions for Canada, Australia … and China. However, the overlap of these quality-competition goods is not large, which suggests that characteristics of …
Persistent link: https://www.econbiz.de/10012758414