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Market Segmentation and the Sources of Rents from Innovation : Personal Computers in the Late 1980'S
Bresnahan, Timothy; Stern, Scott; Trajtenberg, Manuel - 2021
This paper evaluates the sources of transitory market power in the market for personal computers (PCs) during the late 1980's. Our analysis is motivated by the coexistence of low entry barriers into the PC industry and high rates of innovative investment by a small number of PC manufacturers. We...
Persistent link: https://www.econbiz.de/10013245713
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The Theory of Allocation and its Implications for Marketing and Industrial Structure
Carlton, Dennis W. - 2021
mix much akin to the theory of optimal portfolio composition. It is the job of a firm's marketing department to put …This paper identifies a cost of using the price system and from that develops a general theory of allocation. The … theory explains why a buyer's stochastic purchasing behavior matters to a seller. This leads to a theory of optimal customer …
Persistent link: https://www.econbiz.de/10013229126
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Industry Structure, Segmentation, and Competition in the U.S. Hotel Industry
Butters, R. Andrew - 2019
This paper investigates how increases in concentration can be interrupted or reversed by changes in how firms compete on quality. We examine the U.S. hotel industry during the past half century. We document that starting in the early 1980s, quality competition came more in the form of costs that...
Persistent link: https://www.econbiz.de/10012857730
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Information Percolation in Segmented Markets
Duffie, Darrell - 2011
We calculate equilibria of dynamic double-auction markets in which agents are distinguished by their preferences and information. Over time, agents are privately informed by bids and offers. Investors are segmented into groups that differ with respect to characteristics determining information...
Persistent link: https://www.econbiz.de/10013121588
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Aggregate Implications of Micro Asset Market Segmentation
Edmond, Chris - 2010
This paper develops a consumption-based asset pricing model to explain and quantify the aggregate implications of a frictional financial system, comprised of many financial markets partially integrated with one-another. Each of our micro financial markets is inhabited by traders who are...
Persistent link: https://www.econbiz.de/10013151364
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The Dynamics of Financially Constrained Arbitrage
Gromb, Denis - 2015
We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing so provide liquidity to investors. A collateral...
Persistent link: https://www.econbiz.de/10013027277
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Displaced Capital
Ramey, Valerie A.; Shapiro, Matthew D. - 2021
This paper studies the efficiency with which physical capital can be reallocated across sectors. It presents a model of a firm selling specialized capital in a thin resale market. The model predicts that the selling price depends not only on the sectoral specificity of capital, but also on the...
Persistent link: https://www.econbiz.de/10013220526
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Money, Interest Rates, and Exchange Rates with Endogenously Segmented Asset Markets
Alvarez, Fernando; Atkeson, Andrew; Kehoe, Patrick J. - 2021
This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents must pay a Baumol-Tobin style fixed cost to exchange bonds and money. Asset markets are endogenously segmented because this fixed cost leads agents to trade bonds and money only...
Persistent link: https://www.econbiz.de/10013220784
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Oligopoly in Segmented Markets
Ben-Zvi, Shmuel; Helpman, Elhanan - 2022
We propose a new solution concept for a game among oligopolists that simultaneously compete in several segmented markets. The motivation for this solution comes from international trade, but it also has applications in other areas. It is based on a three-stage extension of the two-stage...
Persistent link: https://www.econbiz.de/10013324113
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Enabling Entrepreneurial Choice
Agrawal, Ajay K.; Gans, Joshua S.; Stern, Scott - 2022
Entrepreneurs must choose between alternative strategies for bringing their idea to market. They face uncertainty regarding both the quality of their idea as well as the efficacy of each strategy. While entrepreneurs can reduce this uncertainty by conducting tests, any single test conflates the...
Persistent link: https://www.econbiz.de/10013291843