Showing 1 - 10 of 599
This paper proposes that quality differentiation is an important feature of the operations of multi-product firms. We … develop a model in which manufacturers vary product quality across their product range by using inputs of different quality … levels. Firms' core competency is in varieties of superior quality that bring higher sales despite being more expensive …
Persistent link: https://www.econbiz.de/10010951043
This paper studies the effects of marketing choice to firm growth. I assume that firm-level growth is the result of idiosyncratic productivity improvements with continuous arrival of new potential producers. A firm enters a market if it is profitable to incur the marginal cost to reach the first...
Persistent link: https://www.econbiz.de/10009353476
I develop a new theory of marketing costs and introduce it into a model of trade with product differentiation and firm productivity heterogeneity. In this model, a firm enters a market if it makes profits by reaching a single consumer there and pays an increasing marginal cost to access...
Persistent link: https://www.econbiz.de/10005828418
We develop a theory of multiproduct firms to analyze the effects of globalization on the distributions of firm size, scope, and productivity. Our model explains two puzzles. First, it explains the well-known size-discount puzzle: large firms have lower values of Tobin%u2019s Q than small firms....
Persistent link: https://www.econbiz.de/10005828874
We examine the sales of French manufacturing firms in 113 destinations, including France itself. Several regularities stand out: (1) the number of French firms selling to a market, relative to French market share, increases systematically with market size; (2) sales distributions are very similar...
Persistent link: https://www.econbiz.de/10005830348
This paper presents a tractable formalization and an empirical investigation of the quality-complementarity hypothesis …, the hypothesis that input quality and plant productivity are complementary in generating output quality. We embed this … positive in industries with more scope for quality differentiation, as measured by the advertising and R&D intensity of U …
Persistent link: https://www.econbiz.de/10005774818
I study the positive relationship between prices of tradable goods and per-capita income. I develop a highly tractable general equilibrium model of international trade with heterogeneous firms and non-homothetic consumer preferences that positively links prices of tradables to consumer income....
Persistent link: https://www.econbiz.de/10008548812
We develop an assignment theory to analyze the volume and composition of foreign direct investment (FDI). Firms conduct FDI by either engaging in greenfield investment or in cross-border acquisitions. Cross-border acquisitions involve firms trading heterogeneous corporate assets to exploit...
Persistent link: https://www.econbiz.de/10005088966
data: more successful exporters use higher-quality inputs to produce higher-quality goods (stylized facts 1 and 2), and … firms vary the quality of their products across destinations by using inputs of different quality levels (stylized facts 3 …
Persistent link: https://www.econbiz.de/10005027084
We use a panel of Brazilian exporters, their products, and destination markets to document a set of regularities for multi-product exporters: (i) few top-selling products account for the bulk of a firm's exports in a market, (ii) the distribution of exporter scope (the number of products per...
Persistent link: https://www.econbiz.de/10008776832