Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7243440 | Journal of Economic Behavior & Organization | 2014 | 19 Pages |
Abstract
This paper proposes a theory of competition and customization. When firms allocate their production to both custom-made and standardized products, the fraction of sales from the former will increase in the face of increased competition. Recent surveys conducted by the World Bank on Chinese firms provide a rare direct measure of customization that allows us to test the above-mentioned prediction. We find empirical results consistent with the prediction.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Wen-Tai Hsu, Yi Lu, Travis Ng,