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| Author: | Berry, S. Waldfogel, J. |
| Title: | Product quality and market size |
| Journal: | Journal of Industrial Economics
2010 : MAR, VOL. 58:1, p. 1-31 |
| Index terms: | markets products quality hotel and catering industry restaurants service consumption newspaper industry |
| Freeterms: | cost structure |
| Language: | eng |
| Abstract: | It is questioned if larger markets offer better products. It is documented that in the restaurant industry with quality being produced mainly under variable costs, the range of qualities increases in market size. In daily newspapers, where quality is produced under fixed costs, the average product quality increases with market size, but the market does not offer much additional variety with growth. These results are consistent with theories. |
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