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Quality and Competition: An Empirical Analysis across Industries
CARD Working Papers
  • John M. Crespi, Kansas State University
  • Stéphan Marette, Institut National de la Recherche Agronomique
Publication Date
Series Number
06-WP 420

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

Citation Information
John M. Crespi and Stéphan Marette. "Quality and Competition: An Empirical Analysis across Industries" (2006)
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