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How You Export Matters : Export Mode, Learning and Productivity in China

Bai, Xue - 2015

This paper shows that how firms export (directly or indirectly via intermediaries) matters. We develop and estimate a … differ by export mode. We find that demand and productivity evolve more favorably under direct exporting, though the fixed … the WTO, its exports and export participation would have been 30 and 37 percent lower respectively …

Persistent link: https://www.econbiz.de/10013022601

Outsourcing and Technological Change

Bartel, Ann; Lach, Saul; Sicherman, Nachum - 2021

In this paper we argue that an important source of the recent increase in outsourcing is the computer and information technology revolution, characterized by increased rates of technological change. Our model shows that an increase in the pace of technological change increases outsourcing...

Persistent link: https://www.econbiz.de/10013221885

Entry and Asymmetric Lobbying : Why Governments Pick Losers

Baldwin, Richard E.; Robert-Nicoud, Frédéric - 2021

Governments frequently intervene to support domestic industries, but a surprising amount of this support goes to ailing sectors. We explain this with a lobbying model that allows for entry and sunk costs. Specifically, policy is influenced by pressure groups that incur lobbying expenses to...

Persistent link: https://www.econbiz.de/10013224852

Sunk Costs and Real Options in Antitrust

Pindyck, Robert S. - 2021

Sunk costs play a central role in antitrust economics, but are often misunderstood and mismeasured. I will try to clarify some of the conceptual and empirical issues related to sunk costs, and explain their implications for antitrust analysis. I will be particularly concerned with the role of...

Persistent link: https://www.econbiz.de/10013237049

Rent-Sharing, Holdup, and Wages : Evidence from Matched Panel Data

Card, David E. - 2010

When wage contracts are relatively short-lived, rent sharing may reduce the incentives for investment since some of the returns to sunk capital are captured by workers. In this paper we use a matched worker-firm data set from the Veneto region of Italy that combines Social Security earnings...

Persistent link: https://www.econbiz.de/10013140998

Investment Under Uncertainty : Testing the Options Model with Professional Traders

List, John A. - 2010

An important class of investment decisions is characterized by unrecoverable sunk costs, resolution of uncertainty through time, and the ability to invest in the future as an alternative to investing today. The options model provides guidance in such settings, including an investment decision...

Persistent link: https://www.econbiz.de/10013142935

Vaccine Supply : Effects of Regulation and Competition

Danzon, Patricia Munch - 2011

In US vaccine markets, competing producers with high fixed, sunk costs face relatively concentrated demand. The resulting price and quality competition leads to the exit of all but one or very few producers per vaccine. Our empirical analysis of exits from US vaccine markets supports the...

Persistent link: https://www.econbiz.de/10013122642

A Theory of the Firm Based on Partner Displacement

Hellmann, Thomas - 2014

We develop a new theory of the firm where asset owners sometimes want to change partners ex-post. The model identifies a fundamental trade-off between (i) a "displacement externality" under non-integration, where a partner leaves a relationship even though the benefit is worth less than the loss...

Persistent link: https://www.econbiz.de/10013065174

Mandatory Unbundling and Irreversible Investment in Telecom Networks

Pindyck, Robert S. - 2021

This paper addresses the impact on investment incentives of the network sharing arrangements mandated by the Telecommunications Act of 1996, with a focus on the implications of irreversible investment. Although the goal is to promote competition, the sharing rules now in place reduce incentives...

Persistent link: https://www.econbiz.de/10013247857

Monopoly Power and Endogenous Product Variety : Distortions and Remedies

Bilbiie, Florin; Ghironi, Fabio Pietro; Melitz, Marc J. - 2021

The inefficiencies related to endogenous product creation and variety under monopolistic competition are two-fold: one static—the misalignment between consumers and producers regarding the value of a new variety; and one dynamic—time variation in markups. Quantitatively, the welfare costs of...

Persistent link: https://www.econbiz.de/10013232463