Quality, Sunk Costs and Competition

Q4 Business, Management and Accounting

Review of Marketing Science Pub Date : 2009-01-05 DOI:10.2202/1546-5616.1096

J. Crespi, S. Marette

引用次数: 7

Abstract

This paper explores the link between quality, cost and concentration. Using concentration and cost data and product quality indicators for 2,244 products in over eighty industries in 1997 and 2002 in the US, a two-stage, ordered probit, random effects estimation explores the impact of concentration and cost on quality. The results demonstrate that overall market concentration and high fixed costs are both positively correlated with product quality across most industries. Generally, when either industry concentration or industry fixed costs increase, the likelihood of the product being higher quality increases and the likelihood of observing a lower quality decreases. Further, the authors confirm that prices are a good signal of product quality. A theoretical model is also derived.

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质量、沉没成本与竞争

本文探讨了质量、成本和集中度之间的联系。利用1997年和2002年美国80多个行业的2244种产品的浓度和成本数据和产品质量指标，一个两阶段，有序probit，随机效应估计探索了浓度和成本对质量的影响。结果表明，在大多数行业中，总体市场集中度和高固定成本都与产品质量呈正相关。一般来说，当行业集中度或行业固定成本增加时，高质量产品的可能性增加，低质量产品的可能性降低。此外，作者证实，价格是产品质量的一个很好的信号。并推导了理论模型。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Marketing Science Business, Management and Accounting-Marketing

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The Review of Marketing Science (ROMS) is a peer-reviewed electronic-only journal whose mission is twofold: wide and rapid dissemination of the latest research in marketing, and one-stop review of important marketing research across the field, past and present. Unlike most marketing journals, ROMS is able to publish peer-reviewed articles immediately thanks to its electronic format. Electronic publication is designed to ensure speedy publication. It works in a very novel and simple way. An issue of ROMS opens and then closes after a year. All papers accepted during the year are part of the issue, and appear as soon as they are accepted. Combined with the rapid peer review process, this makes for quick dissemination.