Product choice and product switching
By: Andrew B. Bernard, Stephen Redding, Peter K. Schott.
Contributors: Redding, Stephen.; Schott, Peter K.; London School of Economics and Political Science. Centre for Economic Performance.
Series: Discussion paper ;; no. 594; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 594.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2003
Place of publication: [London]
Language: eng
Format: Electronic resource
Subjects: Product management -- Mathematical models.; Costs, Industrial -- Mathematical models.
Description: "This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change their product mix every five years, and product switches involve more than 40% of firm output and almost half of existing products. The theoretical model incorporates heterogeneous firms, heterogeneous products, and ongoing entry and exit. In equilibrium, firm productivity is correlated with product fixed costs, with the most productive firms choosing to make the products with the highest fixed costs. Changes in market structure result in systematic patterns of firm entry/exit and product switching"--London School of Economics web site.
Notes: Includes bibliographical references.
Title from summary page as viewed on 1/7/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.