Manova, Kalina; Zhang, Zhiwei - National Bureau of Economic Research (NBER) - 2012
This paper proposes that quality differentiation is an important feature of the operations of multi-product firms. We … levels. Firms' core competency is in varieties of superior quality that bring higher sales despite being more expensive …. Using detailed customs data for China, we establish four new stylized facts consistent with this model. First, firms earn …