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We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across customer income segments and beer brands. Our...
Persistent link: https://www.econbiz.de/10013228856
Using data from the US automobile market, we empirically examine the link between competition and innovation. Consistent with a large literature, we use patent counts as a measure of innovation. The combination of the US market's economic importance, market dynamics, and the significant...
Persistent link: https://www.econbiz.de/10011342391
The present paper is concerned with providing a core model to address the issue of firms simultaneously competing in both prices and quantities (capacity levels) within a simple duopoly market setting where products are asymmetrically differentiated by endogenous quality location. A three-stage...
Persistent link: https://www.econbiz.de/10012896357
In the idealized world of theoretical microeconomics, in a perfect competition scenario, identical atomistic producers are assumed to be producing identical fungible goods and compete with each other on price, conceptually leapfrogging the sale price downwards (sometimes in one straight jump)...
Persistent link: https://www.econbiz.de/10014030019
Market power on each side of a multisided platform, whether in the form of increasing prices or decreasing quality, is constrained by the risk of losing sales on the other sides. That tends to weaken market power on each side and encourages platforms to keep prices lower and quality higher than...
Persistent link: https://www.econbiz.de/10014128700
Being able to separate temporary global macroeconomic influences – caused by fluctuations in exchange rates, interest rates and inflation – from intrinsic performance – related to a superior product, production process or management – is crucial to assessing the development of a firm's...
Persistent link: https://www.econbiz.de/10012906895
The theory of entrepreneurial rent posits that powerful incentives for managerial learning are provided by giving managers the opportunity to share the firm surplus, which further enhances the management cognition and situation awareness. These incentives enable management to seek cognitively...
Persistent link: https://www.econbiz.de/10012910603
We hypothesize, and examine empirically, two types of association between organization capital and firm life cycle. Are … firms with high organization capital more likely to be in a particular stage of their life cycle than firms with low … organization capital? Are firms' transitions from one life cycle stage to another over time associated with how much they invest in …
Persistent link: https://www.econbiz.de/10012972861
Does tax knowledge spread across firms? This paper provides systematic evidence along these lines using data on US-listed firms' presence in tax havens and an event study. An enterprise is more likely to own a subsidiary in a specific tax haven once another enterprise operating in the same...
Persistent link: https://www.econbiz.de/10013234496
Being able to separate temporary global macroeconomic influences - caused by fluctuations in exchange rates, interest rates and inflation - from intrinsic performance - related to a superior product, production process or management - is crucial to the assessment of the development of a firm’s...
Persistent link: https://www.econbiz.de/10011952135