Quality and Competition: An Empirical Analysis across Industries

John M. Crespi and Stéphan Marette ()

Food and Agricultural Policy Research Institute (FAPRI) Publications from Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University

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.

Keywords: concentration; market structure; ordered probit; product differentiation; product quality. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 2006-03
View list of references

Downloads: (external link)
http://www.card.iastate.edu/publications/DBS/PDFFiles/06wp420.pdf Full Text (application/pdf)
http://www.card.iastate.edu/publications/synopsis.aspx?id=998 Online Synopsis (text/html)

Related works:
Working Paper: Quality and Competition: An Empirical Analysis across Industries (2006)
Working Paper: Quality and Competition: An Empirical Analysis across Industries (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ias:fpaper:06-wp420

Access Statistics for this paper

More papers in Food and Agricultural Policy Research Institute (FAPRI) Publications from Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University
Contact information at EDIRC.
Series data maintained by ().