Luca Macedoni: Firms in Product Space: Adoption, Growth, and Competition (with John Morrow and Vladimir Tyazhelnikov)

Speaker:  Luca Macedoni - Aarhus University
  Wednesday, February 7, 2024 at 12:00 PM

Which products are potentially produced together? When demand for a product increases, which firms will supply it? Using multi-product production costs within and across firms, we recover a continuous cost based distance between firms and unproduced products. Higher product distance implies decreasing adoption frequency. When export demand induces domestic product adoption, closer firms provide this supply. Potential costs imply measures of Revenue  and Competition Potential. These predict firm sales growth, scope growth and core focus. If all firms produced all products linked by co-production, consumer welfare would increase by 10-30%.


Programme Director
Giam Pietro Cipriani

External reference
Publication date
January 15, 2024

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