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Competition and product survival in the UK car market

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  • Francisco Requena-Silvente
  • James Walker

Abstract

The paper examines the extent to which inter- and intra-firm competition influenced the survival of cars in the UK market between 1971 and 1998. It is shown that, while competition influenced product survival in all market segments within the UK car market, the nature of that competition differed between them. In the small family and large family car segments, intra-firm competition dominated inter-firm competition. In contrast, in the luxury/sports car segment only inter-firm competition conditions resulted in product survival. Evidence was also found that the luxury/sports car segment has grown more competitive over time and that firms marketing products in the family car segments have become considerably more successful at avoiding the effects of intra-firm competition.

Suggested Citation

  • Francisco Requena-Silvente & James Walker, 2005. "Competition and product survival in the UK car market," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2289-2295.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2289-2295
    DOI: 10.1080/00036840500293656
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    References listed on IDEAS

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    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
    2. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
    3. Stavins, Joanna, 1995. "Model Entry and Exit in a Differentiated-Product Industry: The Personal Computer Market," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 571-584, November.
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    Cited by:

    1. Ma, Xingliang & Shi, Guanming, 2010. "GM vs. Non-GM: A Survival Analysis of Hybrid Seed Corn in the US," Staff Paper Series 553, University of Wisconsin, Agricultural and Applied Economics.
    2. Euy-Young Jung & Chulwoo Baek & Jeong-Dong Lee, 2012. "Product survival analysis for the App Store," Marketing Letters, Springer, vol. 23(4), pages 929-941, December.
    3. Varela-Irimia, Xosé-Luís, 2012. "Profitability, uncertainty and multi-product firm product proliferation: The Spanish car industry," Working Papers 2072/181403, Universitat Rovira i Virgili, Department of Economics.
    4. Ma, Xingliang & Shi, Guanming, 2013. "GM vs. Non-GM: A Survival Analysis of U.S. Hybrid Seed Corn," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(3), December.
    5. Lidia Mannarino, 2009. "Il Mercato Delle Automobili In Italia: Effetti Del Regolamento Cee 1400/2002," Working Papers 200913, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    6. repec:wsi:ijitdm:v:16:y:2017:i:06:n:s021962201550011x is not listed on IDEAS

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