Quality and Competition: An Empirical Analysis across Industries, March 2006

(2006) Quality and Competition: An Empirical Analysis across Industries, March 2006. Iowa State University

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Abstract

This paper empirically explores the link between quality and concentration in a cross-section of manufactured goods. Using concentration data and product quality indicators, an ordered probit estimation explores the impact of concentration on quality that is defined as an index of quality characteristics. The results demonstrate that market concentration and quality are positively correlated across different industries. When industry concentration increases, the likelihood of the product being higher quality increases and the likelihood of observing a lower quality decreases.

Item Type: Departmental Report
Keywords: concentration, market structure, ordered probit, product differentiation, product quality
Subjects: Business and industry > Trade and commerce
Business and industry > Economic development
Business and industry
Business and industry > Manufacturing
ID Code: 3624
Deposited By: Margaret Barr
Deposited On: 23 May 2006
Last Modified: 23 May 2006
URI: http://publications.iowa.gov/id/eprint/3624

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