SMU SOE Seminar (October 27, 2023): Firms in Product Space: Adoption, Growth, and Competition

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ABSTRACT Which products are produced together or potentially produced? Can any firm eventually supply any new demand? Standard product classifications contain answers to these questions by representing an inherent product space firms operate in, but in practice they represent multiple organizational relationships. Taking a production based approach using multi-product production patterns within and across firms, we recover continuous cost based distances between pairs of products and firms. Product distance implies a product adoption path, with each rank of product distance decreasing adoption frequency by .5-.8 percent relative to base. When export demand for unproduced products induces domestic adoption, closer firms supply them and mergers are more likely with close firms. Using these distance measures to determine firms' market access to products and supplier access to firms, we find market access increases sales growth and portfolio entropy, while supplier access decrease both. Click here to view the CV.
		PRESENTER Luca Macedoni Aarhus University
		RESEARCH FIELDS International Trade Industrial Organization
		DATE: 27 October 2023 (Friday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903