Bernard, Andrew B., Redding, Stephen and Schott, Peter K. (2010) Multiple-product firms and product switching. American Economic Review, 100 (1). pp. 70-97. ISSN 0002-8282
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Abstract
This paper examines the frequency, pervasiveness, and determinants of product switching by US manufacturing firms. We find that one-half of firms alter their mix of five-digit SIC products every five years, that product switching is correlated with both firm- and firm-product attributes, and that product adding and dropping induce large changes in firm scope. The behavior we observe is consistent with a natural generalization of existing theories of industry dynamics that incorporates endogenous product selection within firms. Our findings suggest that product switching contributes to a reallocation of resources within firms toward their most efficient use
Item Type: | Article |
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Official URL: | http://www.aeaweb.org/aer/index.php |
Additional Information: | © 2010 AEA |
Divisions: | Centre for Economic Performance Economics |
Subjects: | H Social Sciences > HD Industries. Land use. Labor |
JEL classification: | L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification and Scope, Age, Profit, and Sales L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L21 - Business Objectives of the Firm |
Date Deposited: | 02 May 2010 12:25 |
Last Modified: | 13 Aug 2024 17:06 |
URI: | http://eprints.lse.ac.uk/id/eprint/27861 |
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