Journal article
The product differentiation hypothesis for corporate trade credit
Abstract
Abstract The product differentiation hypothesis for trade credit says that business managers use trade credit like advertising to differentiate their products. Prior studies of this hypothesis conclude that higher profit margins induce firms to increase trade credit and vice versa. We better represent the relation between the cost of bad debts and the price of the product offered on credit. When prices are higher, firms suffer greater losses …
Authors
Blazenko GW; Vandezande K
Journal
Managerial and Decision Economics, Vol. 24, No. 6‐7, pp. 457–469
Publisher
Wiley
Publication Date
September 2003
DOI
10.1002/mde.1113
ISSN
0143-6570