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Product Location Choice and Firm Capabilities: Evidence from the U.S. Automobile Industry

Louis Thomas and Keith Weigelt
Strategic Management Journal
Vol. 21, No. 9 (Sep., 2000), pp. 897-909
Published by: Wiley
Stable URL: http://www.jstor.org/stable/3094259
Page Count: 13
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Product Location Choice and Firm Capabilities: Evidence from the U.S. Automobile Industry
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Abstract

We test theories of product differentiation and firm capabilities using data from the U.S. automobile industry. We find managers introduce new models close to their existing ones but far from rival models. We also find entrants and foreign manufacturers locate models closer to rival models. These results are consistent with both economic models of product differentiation and theories of firm capabilities

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