This paper studies the introduction of new products (increase in product variety) in the automobile industry. The focus is on the two sources of market power that may allow the firms to get higher profits (and, thus, recoup investments): new products and brand-name reputation. The effects of new...

Seit den neunziger Jahren kam es aufgrund technologischer, organisatorischer und umweltbedingter Entwicklungen im Fahrzeugbau zu einer außergewöhnlichen Kumulierung von Reaktionen und Innovationsanstößen, die seit Mitte der neunziger Jahre Strukturen und Prozesse dieser bedeutenden Industrie...

This paper studies the introduction of new products (increase in product variety) in the automobile industry. The focus is on the two sources of market power that may allow the firms to get higher profits (and, thus, recoup investments): new products and brand-name reputation. The effects of new...