IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/18800.html

Firms in Product Space: Adoption, Growth and Competition

Author

Listed:
  • Macedoni, Luca
  • Morrow, John
  • Tyazhelnikov, Vladimir

Abstract

Which products are potentially produced together? When demand for a product increases, which firms will supply it? Using multi-product production patterns within and across firms, we recover a continuous cost based distance between firms and unproduced products. Higher product distance implies decreasing adoption frequency. When export demand induces domestic product adoption, closer firms provide this supply. Potential costs imply measures of Revenue and Competition Potential. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 10-30%.

Suggested Citation

  • Macedoni, Luca & Morrow, John & Tyazhelnikov, Vladimir, 2024. "Firms in Product Space: Adoption, Growth and Competition," CEPR Discussion Papers 18800, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18800
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP18800
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Jackie M.L. Chan & Michael Irlacher & Michael Koch & Luca Macedoni, 2025. "Wage Setting in Multiproduct Firms," Economics working papers 2025-02, Department of Economics, Johannes Kepler University Linz, Austria.
    3. Herkenhoff, Philipp & Krautheim, Sebastian & Sauré, Philip, 2024. "A simple model of buyer–seller networks in international trade," European Economic Review, Elsevier, vol. 170(C).

    More about this item

    Keywords

    ;

    JEL classification:

    • F1 - International Economics - - Trade
    • D2 - Microeconomics - - Production and Organizations
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:18800. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.