Product Quality Selection and Firm Survival. Evidence from the British Automobile Industry, 1895-1970
AbstractThis paper proposes an additional determininant of firm survival. Based on a detailed examination of firm survival in the British automobile industry between 1895 and 1970, we conclude that firm’s selection of submarket-defined by quality level-influenced survival. In contrast to findings for the US automobile industry, there is no evidence of first-mover advantage in the market as a whole. However, we do find evidence of first-mover advantage after conditioning on submarket choice.
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Bibliographic InfoPaper provided by Florida International University, Department of Economics in its series Working Papers with number 0601.
Length: 33 pages
Date of creation: Jan 2006
Date of revision:
firm survival; product differentiation; submarket; product quality;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-COM-2006-01-24 (Industrial Competition)
- NEP-ENT-2006-01-24 (Entrepreneurship)
- NEP-INO-2006-01-24 (Innovation)
- NEP-MIC-2006-01-24 (Microeconomics)
- NEP-TID-2006-01-24 (Technology & Industrial Dynamics)
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