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The Survival Of Differentiated Products: An Application To The Uk Automobile Market, 1971-2002

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  • FRANCISCO REQUENA-SILVENTE
  • JAMES T. WALKER

Abstract

We investigate how competition affected the survival of products in the UK automobile market between 1971 and 2002. We find, after using a host of controls to account for product characteristics and changes in market structure, that (i) within and between firm spatial competition significantly reduces the life of a model, (ii) initial product differentiation and variant proliferation obviate competition, and (iii) product innovation significantly extends model survival. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

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  • Francisco Requena-Silvente & James T. Walker, 2009. "The Survival Of Differentiated Products: An Application To The Uk Automobile Market, 1971-2002," Manchester School, University of Manchester, vol. 77(3), pages 288-316, June.
  • Handle: RePEc:bla:manchs:v:77:y:2009:i:3:p:288-316
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