Publication Type
Journal Article
Version
acceptedVersion
Publication Date
10-2014
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.
Keywords
Customization, Competition, Manufacturing, Spatial competition
Discipline
Behavioral Economics | Economics
Research Areas
Applied Microeconomics
Publication
Journal of Economic Behavior and Organization
Volume
106
First Page
10
Last Page
28
ISSN
0167-2681
Identifier
10.1016/j.jebo.2014.05.011
Publisher
Elsevier
Citation
HSU, Wen-Tai; LU, Yi; and NG, Travis.
Does Market Competition Lead to Customization?. (2014). Journal of Economic Behavior and Organization. 106, 10-28.
Available at: https://ink.library.smu.edu.sg/soe_research/1639
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jebo.2014.05.011