Do active secondary markets aid or harm durable goods manufacturers? We build a dynamic equilibrium model of durable goods oligopoly, with consumers who incur lumpy costs when transacting in the secondary market, and calibrate it to U.S. automobile industry data. By varying transaction costs, we...

To investigate whether secondary markets aid or harm durable goods manufacturers, we build a dynamic model of durable goods oligopoly with transaction costs in the secondary market. Calibrating model parameters using data from the US automobile industry, we find the net effect of opening the...

The distribution of Chinese family names is investigated based on data of the fifth national census of China in 2000, including 7329 Chinese family names and 1.28 billion people. The cumulative distribution function (CDF) of family name in multiple scales is presented and the correlation between...

In order to take the weight of connection into consideration and to find a natural measurement of weight, we have collected papers in Econophysics and constructed a network of scientific communication to integrate idea transportation among econophysicists by collaboration, citation and personal...

As is well-recognized, market dominance is a typical outcome in markets with network effects. A firm with a larger installed base offers a more attractive product which induces more consumers to buy its product which produces a yet bigger installed base advantage. Such a setting is investigated...

Switching costs are present in most network industries, and this paper investigates their effects on the market outcome. I find that the role of switching costs critically depends on the strength of network effects and the quality of the outside option. Without a viable outside option, high...

This paper investigates the matching between banks and firms in the loan market. We estimate a many-to-one two-sided matching model using the Fox (2010) matching maximum score estimator. Using data on the U.S. loan market from 2000 to 2003, we find evidence of positive assortative matching of...

This paper investigates how switching costs affect product compatibility and market dynamics in network industries. A reduction in the switching cost makes the firms' products more attractive relative to the outside good, which diminishes the market expansion benefit of making products...

We investigate the price and welfare effects of mergers through simulations using a dynamic model of capacity accumulation in which firms produce near-homogeneous products and compete in prices. We find that mergers are welfare-reducing and that their long-run effects are worse than their...

Empirical work on bank loans typically regresses loan spreads (markups of loan interest rates over a benchmark rate) on observed characteristics of banks, firms, and loans. The estimation is problematic when some of these characteristics are only partially observed and the matching of banks and...