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European High-End Varieties in International Competition

Lionel Fontagné () and Sophie Hatte
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Sophie Hatte: PSE - Paris School of Economics, UNIROUEN - Université de Rouen Normandie - NU - Normandie Université, CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We study international competition in high-end varieties for 416 detailed HS6 product categories marketed by the leading French luxury brands. We construct a world database of trade flows for these products, computing unit values of related bilateral trade flows and analyzing competition among the main exporters. We use the observed distribution of unit values to define a high-end market segment. Exports of high-end varieties are shown to be less sensitive to distance, and found more sensitive to destination country wealth than other varieties, but only in relation to countries already producing a large range of luxury brands, pointing to a first-mover advantage.

Keywords: Product differentiation; Market shares; Unit values (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2016-04-08
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01299820
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Working Paper: European High-End Varieties in International Competition (2014) Downloads
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