Quality and Competition: An Empirical Analysis across Industries

John M. Crespi and Stephan Marette

No 18426, Hebrew University of Jerusalem Archive from Hebrew University of Jerusalem

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: Industrial; Organization (search for similar items in EconPapers)
Pages: 29
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:hebarc:18426

DOI: 10.22004/ag.econ.18426

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