Quality and Competition: An Empirical Analysis across Industries

John Crespi and Stéphan Marette ()

Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) from Center for Agricultural and Rural Development (CARD) 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)
Date: 2006-03
New Economics Papers: this item is included in nep-mic
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https://www.card.iastate.edu/products/publications/pdf/06wp420.pdf Full Text (application/pdf)
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Related works:
Working Paper: Quality and Competition: An Empirical Analysis across Industries (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ias:fpaper:06-wp420

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