När kvalitet möter marknadsstorlek

Sammanfattning: This study aims to empirically explore the theories by Shaked & Sutton (1987) of the relationship between market size and quality by collecting and analyzing data from restaurants in Germany and France. More precisely, this study will aim to look at the relationship between average quality and market size. Primary data of quality measurements were collected from Guide Michelin from cities of a population larger than 30 000 inhabitants and analyzed using least-square regressions. In my study, it is possible that high-quality restaurants can produce quality using some combination of both fixed and variable costs. However, we do not know precisely how much of the quality costs are fixed or variable. According to Berry & Waldfogel (2010), more fixed costs could increase average quality on the market as market size increases. In my findings, I cannot see a relationship between average quality and market size, which according to Shaked & Sutton (1987) theories could imply that average quality might be determined by mostly variable costs instead.