Publication Type

Journal Article

Version

Postprint

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

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/j.jebo.2014.05.011

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