2 results for ‘Product design’
A Model of Trade with Endogenous Product Design

We study a model of international trade in which firms choose between a board product design that targets mainstream consumers, and a niche product design that targets specific market segments. Assuming that local firms have absolute advantage in providing niche products to the local market, we show that in equilibrium, the more efficient firms adopt a board design and export whereas the less efficient firms adopt a niche design and do not export.


Subscribe for latest content

Be the first to get our newsletter and updates in your inbox.