Firm Metrics with Continuous R&D, Quality Improvement, and Cournot Quantities
The paper considers a dynamic two-firm model of intra-industry trade in which the firms compete for the same market on the basis of product reliability. By assumption, the home firm always has the reliability cost advantage but it may or may not have the manufacturing cost advantage. The results sug...
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| Veröffentlicht in: | International advances in economic research 2010-08, Vol.16 (3), p.243-256 |
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| creator | Highfill, Jannett McAsey, Michael |
| description | The paper considers a dynamic two-firm model of intra-industry trade in which the firms compete for the same market on the basis of product reliability. By assumption, the home firm always has the reliability cost advantage but it may or may not have the manufacturing cost advantage. The results suggest that reliability improvement always helps customers in that they pay a lower full quality price. Comparing the home firm with the foreign firm, metrics such as price, sales, profit margins, and variable profits depend on the relative costs, with the low cost firm performing better. Finally, although this is not the common outcome, the paper suggests that it is possible for the reliability cost advantages gained by R&D expenditures to overcome manufacturing cost disadvantages. |
| doi_str_mv | 10.1007/s11294-010-9269-9 |
| format | Article |
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McAsey, Michael</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c520t-78a32dfbb25f42fb5586662e2ce89b8b05f6340b6a7534a9e46e2b969a0641a3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2010</creationdate><topic>Competition</topic><topic>Competitive advantage</topic><topic>Cooperation</topic><topic>Cost benefit analysis</topic><topic>Costs</topic><topic>Customers</topic><topic>Economic Growth</topic><topic>Economic models</topic><topic>Economic theory</topic><topic>Economics</topic><topic>Economics and Finance</topic><topic>Foreign investment</topic><topic>International Economics</topic><topic>Macroeconomics/Monetary Economics//Financial Economics</topic><topic>Manufacturing</topic><topic>Microeconomics</topic><topic>Monte Carlo simulation</topic><topic>Prices</topic><topic>Product reliability</topic><topic>Profit margins</topic><topic>Quality</topic><topic>Quality improvement</topic><topic>R&D</topic><topic>Research & development</topic><topic>Research & development expenditures</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Highfill, Jannett</creatorcontrib><creatorcontrib>McAsey, Michael</creatorcontrib><collection>CrossRef</collection><collection>Gale Business: Insights</collection><collection>Business Insights: Essentials</collection><collection>Global News & ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ProQuest Central (Corporate)</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>ABI/INFORM Global</collection><collection>One Business (ProQuest)</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>International advances in economic research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Highfill, Jannett</au><au>McAsey, Michael</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Firm Metrics with Continuous R&D, Quality Improvement, and Cournot Quantities</atitle><jtitle>International advances in economic research</jtitle><stitle>Int Adv Econ Res</stitle><date>2010-08-01</date><risdate>2010</risdate><volume>16</volume><issue>3</issue><spage>243</spage><epage>256</epage><pages>243-256</pages><issn>1083-0898</issn><eissn>1573-966X</eissn><abstract>The paper considers a dynamic two-firm model of intra-industry trade in which the firms compete for the same market on the basis of product reliability. 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| identifier | ISSN: 1083-0898 |
| ispartof | International advances in economic research, 2010-08, Vol.16 (3), p.243-256 |
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| language | eng |
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| source | EBSCOhost Business Source Complete; SpringerLink Journals - AutoHoldings |
| subjects | Competition Competitive advantage Cooperation Cost benefit analysis Costs Customers Economic Growth Economic models Economic theory Economics Economics and Finance Foreign investment International Economics Macroeconomics/Monetary Economics//Financial Economics Manufacturing Microeconomics Monte Carlo simulation Prices Product reliability Profit margins Quality Quality improvement R&D Research & development Research & development expenditures Studies |
| title | Firm Metrics with Continuous R&D, Quality Improvement, and Cournot Quantities |
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