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We present a heterogeneous-firm model in which management ability increases both pro- duction efficiency and product quality. Combining six micro-datasets on management prac- tices, production and trade in Chinese and American firms, we find broad support for the model's predictions. First,...
Persistent link: https://www.econbiz.de/10011864551
We derive equilibrium incentives to use comparative advertising that pushes up own brand perception and pulls down the brand image of targeted rivals. Data on content and spending for all TV advertisements in OTC analgesics enable us to construct matrices of dollar rival targeting and estimate...
Persistent link: https://www.econbiz.de/10011286486
unobserved heterogeneity. We find a small, but measurable, negative price elasticity for inappropriate drug use with respect to … inappropriate medications, however the elasticity of cost sharing is lower than that of drugs in general and the price elasticity is …
Persistent link: https://www.econbiz.de/10003951612
The US refining industry is a leading producer of sulfur oxide and nitrogen oxide emissions. As a result of the Clean Air Act, it has been subject to a host of environmental regulations that prescribe the production processes firms can employ and limits their emissions based on the permits they...
Persistent link: https://www.econbiz.de/10009659324
We apply and extend the cost-based approach to bundling and tying under competition developed in Evans and Salinger (2004a) to over-the-counter pain relievers and cold medicines. We document that consumers pay much less for tablets with multiple ingredients than they would to buy tablets with...
Persistent link: https://www.econbiz.de/10011451375
substantial price differences between gas from different export countries, and do prices move together? Time series of Norwegian … prices for gas to Germany move proportionally over time, indicating an integrated gas market (the Law of One Price holds). We …. Among the explanatory factors for price discrepancies are differences in volume flexibility (swing) and perceived political …
Persistent link: https://www.econbiz.de/10009781639
This paper studies the price and employment response of firms to the introduction of a nation-wide minimum wage in … insignificant. In contrast, affected firms increased prices much more frequently. The price effect is prevalent across different … degree of price pass-through were high and firms rolled over the lion's share of the costs generated by the minimum wage to …
Persistent link: https://www.econbiz.de/10011990059
This paper reports the results from a statistical analysis of pharmaceutical price negotiations in Germany, where the …' launch strategy (freely chosen first year price) still has a major impact on pricing while the impact of the additional …
Persistent link: https://www.econbiz.de/10012119750
transfer scheme called "gas price brake." A unique feature of this energy price relief measure is that both households and the … industry receive a transfer that increases in one's actual gas price. In a formal model, we show that such a transfer scheme … overcome this adverse effect of the gas price brake. An equivalent critique applies to the electricity price brake that is to …
Persistent link: https://www.econbiz.de/10013473667
shocks have large and persistent price effects, while output effects tend to be moderate. The 2022 natural gas price spike … winter. Counterfactual simulations of an embargo on natural gas imports from Russia indicate similar positive price and …
Persistent link: https://www.econbiz.de/10014576948