Why do similar firms export differently?

Vincent Boitier ()
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Vincent Boitier: GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université

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Abstract: Eaton et al. (2011) underline that firms with similar production costs, entry costs and demand export to different countries. In this theoretical article, I provide a rationale for this feature of the data. I demonstrate that similar firms exporting differently can be explained by a baseline trade-off between attractiveness and competition that is present in any model with monopolistic competition. I then show that this trade-off also generates valuable theoretical features including distance-related mark-ups, third country effect and equivalence with random utility models.

Keywords: Firms’ location; Attractiveness; Competition; Dispersion in strategies; Potential function (search for similar items in EconPapers)
Date: 2022-12
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Citations: View citations in EconPapers (1)

Published in Research in Economics, 2022, 76 (4), pp.373-385. ⟨10.1016/j.rie.2022.09.002⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04204655

DOI: 10.1016/j.rie.2022.09.002

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