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THE SURVIVAL OF DIFFERENTIATED PRODUCTS: AN APPLICATION TO THE UK AUTOMOBILE MARKET, 1971-2002*

2009

We investigate how competition affected the survival of products in the UK automobile market between 1971 and 2002. We find, after using a host of controls to account for product characteristics and changes in market structure, that (i) within and between firm spatial competition significantly reduces the life of a model, (ii) initial product differentiation and variant proliferation obviate competition, and (iii) product innovation significantly extends model survival.

Competition (economics)Economics and EconometricsMarket structureProduct innovationAutomobile marketEconomicsProduct differentiationProduct characteristicsIndustrial organizationThe Manchester School

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PEPhysical Sciences and Engineering
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LSLife Sciences
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SHSocial Sciences and Humanities
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