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Competition in the Pharmaceutical Industry: How do Quality Differences Shape Advertising Strategies?
de Frutos, Maria-Angeles; Ornaghi, Carmine; Siotis, Georges - C.E.P.R. Discussion Papers - 2010
We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality …/side e¤ects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We … show that advertising strategies are strategic substitutes, with the better quality drugs being the ones that are most …
Persistent link: https://www.econbiz.de/10008680762
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A Tale of Two Platforms: Dealer Intermediation in the European Sovereign Bond Market
Dunne, Peter; Hau, Harald; Moore, Michael - C.E.P.R. Discussion Papers - 2008
Interdealer trading in the European sovereign bond market is characterized by low spreads and high liquidity. This paper examines whether the dealer-customer segment of the market also benefits from low spreads. Customers are smaller banks and buy-side financial institutions who request quotes...
Persistent link: https://www.econbiz.de/10005123656
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Estimating the Border Effect: Some New Evidence
Gopinath, Gita; Gourinchas, Pierre-Olivier; Hsieh, Chang-Tai - C.E.P.R. Discussion Papers - 2009
To what extent do national borders and national currencies impose costs that segment markets across countries? To answer this question we use a dataset with product level retail prices and wholesale costs for a large grocery chain with stores in the U.S. and Canada. We develop a model of pricing...
Persistent link: https://www.econbiz.de/10005000445
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Why do Pre-tax Car Prices Differ so Much Across European Countries?
Flam, Harry; Nordström, Håkan - C.E.P.R. Discussion Papers - 1995
The European car market is segmented by regulatory measures that support price discrimination by manufacturers and make consumer arbitrage difficult and costly. In a sample covering 43 models making up 80% of car sales in 11 countries in 1989-92, we find that the average standard deviation of...
Persistent link: https://www.econbiz.de/10005067533
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On the Effects of Anti-dumping Legislation
Barros, Pedro Luis Pita; Martinez-Giralt, Xavier - C.E.P.R. Discussion Papers - 1997
We show that the nature and extent of trade is significantly affected by the pricing policy that firms are allowed to employ. A switch from discriminatory to non-discriminatory pricing (e.g. strict anti-dumping laws) leads to a switch from two-way trade to one-way trade. It is far from true that...
Persistent link: https://www.econbiz.de/10005504678
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Returns to Mobility in the Transition to a Market Economy
Boeri, Tito; Flinn, Christopher J - C.E.P.R. Discussion Papers - 1999
In spite of ongoing dramatic changes in labor market structure, transitional economies display rather low worker flows across sectors and occupations. Such low mobility can be explained by low returns to job changes as well as by market segmentation in the allocation of job offers. We develop an...
Persistent link: https://www.econbiz.de/10005114168
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Bond Ratings Matter: Evidence from the Lehman Brothers Index Rating Redefinition
Chen, Zhihua; Lookman, Aziz; Schürhoff, Norman; Seppi, … - C.E.P.R. Discussion Papers - 2012
The 2005 inclusion of Fitch ratings in the Lehman composite index ratings provides a quasi-natural experiment to identify rating-based market segmentation in the corporate bond market. Split-rated bonds with favorable Fitch rating that were mechanically upgraded to investment-grade status...
Persistent link: https://www.econbiz.de/10011083426
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Consumer Arbitrage Across a Porous Border
Chandra, Ambarish; Head, Keith; Tappata, Mariano - C.E.P.R. Discussion Papers - 2012
National borders, including the easily crossed US-Canada border, have been shown to separate markets and sustain price differences. The resulting arbitrage opportunities vary temporally with the exchange rate and cross-sectionally with travelers' distance to the border. We estimate a structural...
Persistent link: https://www.econbiz.de/10011083500
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The Buyer Margins of Firms' Exports
Carballo, Jerónimo; Ottaviano, Gianmarco; Volpe … - C.E.P.R. Discussion Papers - 2013
We use highly disaggregated firm-level export data from Costa Rica, Ecuador, and Uruguay over the period 2005-2008 to provide a precise characterization of firms' export margins, across products, destination countries, and crucially customers. We show that a firm's number of buyers and the...
Persistent link: https://www.econbiz.de/10011083871
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Country Size, Currency Unions, and International Asset Returns
Hassan, Tarek - C.E.P.R. Discussion Papers - 2012
Differences in real interest rates across developed economies are puzzlingly large and persistent. I propose a simple explanation: Bonds issued in the currencies of larger economies are expensive because they insure against shocks that affect a larger fraction of the world economy. I show that...
Persistent link: https://www.econbiz.de/10011083930