Title: Verti-zontal differentiation in export markets
Authors: Di Comite, Francesco ×
Thisse, Jacques-François
Vandenbussche, Hylke #
Issue Date: 2014
Series Title: Journal of International Economics vol:93 issue:1 pages:50-66
Abstract: Many trade models of monopolistic competition identify cost efficiency as the main determinant of firm performance in export markets. To date, the analysis of demand factors has received much less attention. We propose a new model where consumer preferences are asymmetric across varieties and heterogeneous across countries. The model generates new predictions and allows for an identification of horizontal differentiation (taste) clearly distinguished from vertical differentiation (quality). Data patterns observed in Belgian firm–product level exports by destination are congruent with the predictions and seem to warrant a richer modelling of consumer demand.
ISSN: 0022-1996
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of International Economics, Leuven
× corresponding author
# (joint) last author

Files in This Item:
File Description Status SizeFormat
JIE_corrected 2014.pdf Submitted 565KbAdobe PDFView/Open Request a copy

These files are only available to some KU Leuven Association staff members


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science