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%.
