Product and price competition in a regional context
In this paper, we use the concepts product and price competition to describe the early and late stages of the product cycle respectively. Central regions are expected to offer locational advantages to product competing production, while the opposite is true for price competing production. Based upon this expectation we develop hypotheses concerning the characteristics of product and price competition in central and peripheral regions with regard to productivity, employment, gross profit shares, and changes in such characteristics over time. Our empirical tests show that the differences between the periphery and the central regions with regard to product and price competition are in line with our expectations.
KeywordsCentral Region Late Stage Empirical Test Peripheral Region Product Cycle
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