Demand and Supply Side Linkages in Exporting Multiproduct Firms

Carsten Eckel, Lisandra Flach and Ning Meng

No 18627, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Products produced by a multiproduct firm can be linked through demand linkages or supply linkages. On the demand side, changes in the price of one product can affect the demand for a firm's other products through shifts in consumer expenditures. This is commonly referred to as the cannibalization effect. On the supply side, joint inputs can create a dependency of one product's marginal costs on the output of other products. The existence of these linkages is important for how firms respond to shocks and has major implications for several performance measures, such as productivity and markups. This paper provides first empirical evidence for the existence of cannibalization linkages in presence of supply linkages, which is implied evidence for market power.

Keywords: Multiproduct firms; Cannibalization effect; Demand Linkages; Supply Linkages; Anti-dumping Duties; quality adjustment; Mark-ups (search for similar items in EconPapers)
JEL-codes: D21 D24 F12 F13 F14 L11 L15 L25 (search for similar items in EconPapers)
Date: 2023-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP18627 (application/pdf)
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

Related works:
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: https://EconPapers.repec.org/RePEc:cpr:ceprdp:18627

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP18627

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().