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We demonstrate the possibility of shake-out of firms and emergence of inter-firmheterogeneity along the (socially optimal) dynamic equilibrium path of a competitive industry with freeentry and exit, even when there is no uncertainty and all firms are ex ante identical with perfectforesight....
Persistent link: https://www.econbiz.de/10010372852
This paper develops a novel theory linking quantity discounts to bargaining power in scenarios where retailers, organized as a trade association, negotiate uniform wholesale prices with suppliers. Our theory predicts that suppliers offer greater quantity discounts in regional markets where they...
Persistent link: https://www.econbiz.de/10014583242
How does a country's economic geography evolve along the development path? This paper documents recent employment growth in 18,961 regions in eight of the world's main economies. Overall, market potential is losing importance, and local density is gaining importance, as correlates of local...
Persistent link: https://www.econbiz.de/10013310242
Industry cost and demand conditions can vary across countries leading to differences in industry market structure, including the distribution of output and productivity across firms and the magnitude of entry and exit flows. It has been argued that despite many outward similarities, two of the...
Persistent link: https://www.econbiz.de/10013114763
for the notion that markups are importantly related to differences in industry concentration, though the effect of … unionization is important. Concentration effects are important only in industries producing durable goods or differentiated …
Persistent link: https://www.econbiz.de/10013233459
This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change their product mix every five years, and product switches involve more than...
Persistent link: https://www.econbiz.de/10013235862
on manufacturing industry-level growth rates and banking market concentration for U.S. states during 1899-1929--a period … geographically. Unlike studies of modern developing and developed countries, we find that banking market concentration had a positive … that banking market concentration boosted industrial growth. In addition, we find evidence that a greater prevalence of …
Persistent link: https://www.econbiz.de/10013148371
This paper investigates the effect of industrial penetration and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry...
Persistent link: https://www.econbiz.de/10011456738
. Industries with more concentration and more common ownership invest less, even after controlling for current market conditions … with more concentration and more common ownership. These firms spend a disproportionate amount of free cash flows buying …
Persistent link: https://www.econbiz.de/10012902577
We present estimates of 4 and 8 firm concentration ratios by industry and in weighted aggregate form for the … concentration ratios, in the order of one half of the US for 4 firm ratios. One possible implication is that markets for Chinese …
Persistent link: https://www.econbiz.de/10013058696