Multi-Product Firms and Flexible Manufacturing in the Global Economy

Carsten Eckel () and J. Peter Neary ()

No 5941, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We present a new model of multi-product firms (MPFs) and flexible manufacturing and explore its implications in partial and general equilibrium. International trade integration affects the scale and scope of MPFs through a competition effect and a demand effect. We demonstrate how MPFs adjust in the presence of single-product firms and in heterogeneous industries. Our results are in line with recent empirical evidence and suggest that MPFs in conjunction with flexible manufacturing play an important role in the impact of international trade on product diversity.

Keywords: flexible manufacturing; general oligoplistic equilibrium (GOLE); international trade; multi-product firms; product diversity (search for similar items in EconPapers)
JEL-codes: F12 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-int and nep-mic
Date: 2006-11
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Working Paper: Multi-Product Firms and Flexible Manufacturing in the Global Economy (2006)
Working Paper: Multi-Product Firms and Flexible Manufacturing in the Global Economy (2006)
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