This paper empirically establishes the significant roles of transport costs in price dispersions across regions. We identify and estimate the iceberg-type distance-elastic transport costs as a parameter of a structural model of cross-regional price differentials featuring product delivery...

We propose an alternative method for investigating whether firms improve performance through mergers after taking into account the selection bias of merging firms. We simultaneously consider the dynamics of firm performance and the merger decision by employing full information maximum likelihood...

Past studies in the literature of the law of one price (LOP) show statistically significant but economically subtle roles of geographical distance in regional price dispersions. In this paper, we challenge this empirical "death of distance" as a primary source of LOP violations investigating a...

Past studies in the literature of the law of one price (LOP) show statistically significant but economically subtle roles of geographical distance in regional price dispersions. In this paper, we challenge this empirical “death of distance” as a primary source of LOP violations investigating...

Previous literature has noted the negative effects of intellectual property protection (IPP) on trade volume when the market power effect dominates market expansion effect. Since both the effects increase profits, IPP often induces entry without ambiguity. However, this study, using...

When identifying trade costs, the assumption of iceberg-type costs causes biases when specific (per-unit) costs exist. Although some studies measure the magnitude of specific costs, they suffer from self-selection bias. Furthermore, studies that account for selection and quality heterogeneity do...

Past studies in the literature of the law of one price (LOP) show statistically significant but economically subtle roles of geographical distance in regional price dispersions. In this paper, we challenge this empirical "death of distance"' as a primary source of LOP violations investigating a...