Download or read book Endogenous Entry in Markets with Unobserved Quality written by Anthony Creane and published by BiblioGov. This book was released on 2013-06 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: In markets for experience or credence goods adverse selection can drive out higher quality products and services. This negative implication of asymmetric information about product quality for trading and welfare, poses the question of how such markets first originate. We consider a market in which sellers make observable investment decisions to enter a market in which each seller's quality becomes private information. Entry has the tendency to lower prices, which may lead to adverse selection. The implied price collapse limits the amount of entry so that high prices are sustained in equilibrium, which results in above normal profits. The analysis suggests that rather than observing the canonical market collapse, markets with asymmetric information about product quality may instead be characterized by above normal profits even in markets with low measures of concentration and less entry than would be expected.
Download or read book Endogenous Entry in Markets with Unobserved Quality written by Anthony Creane and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Markets for experience and credence goods can suffer from adverse selection. The negative implication for trading and welfare poses the question of how such markets originate. We consider entry in markets in which each seller's quality becomes private information. Entry lowers prices, which can trigger adverse selection. The anticipated price collapse limits entry so that high prices are sustained, resulting in above normal profits. The analysis suggests that rather than observing the canonical market collapse, markets with asymmetric information about quality may have above normal profits and less entry than would be expected even when there is low concentration.
Download or read book Market Investigations written by Massimo Motta and published by Cambridge University Press. This book was released on 2022-01-06 with total page 411 pages. Available in PDF, EPUB and Kindle. Book excerpt: In many economic sectors – the digital industries being first and foremost – the market power of dominant firms has been steadily increasing and is rarely challenged by competitors. Existing competition laws and regulations have been unable to make markets more contestable. The book argues that a new competition tool is needed: market investigations. This tool allows authorities to intervene in markets which do not function as they should, due to market features such as network effects, scale economies, switching costs, and behavioural biases. The book explains the role of market investigations, assesses their use in the few jurisdictions where they exist, and discusses how they should be designed. In so doing, it provides an invaluable and timely instrument to both practitioners and academics.
Download or read book The Inefficiency of Market Transparency written by Yiquan Gu and published by . This book was released on 2010 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Endogenous Quality Choice Under Upstream Market Power written by Borja Mesa and published by . This book was released on 2010 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Innovation Entry into Multiple Markets and Unobserved Heterogeneity written by Ganna Pogrebna and published by . This book was released on 2014 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers an experimental market entry game, where the decision problem involves several heterogeneous markets and players have an opportunity to enter several markets simultaneously. We find that groups fail to coordinate on any of the multiple pure strategy Nash equilibria by exhibiting excess entry in the majority of rounds. The likelihood of overentry depends on the market capacity and characteristics of the experimental markets. We also find that, on average, the behavior of the individual participants can be reconciled with the mixed strategy equilibrium prediction. Yet, this prediction fails to account for the differences in the individual profiles. By conducting an econometric estimation that accounts for the unobserved heterogeneity, we show that market capacity, expectations about the number of entrants, the amount of payoff from the previous period and the history of over- or underentry have significant impact on the individual action choice.
Download or read book Econometric Models For Industrial Organization written by Matthew Shum and published by World Scientific. This book was released on 2016-12-14 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Models for Industrial Organization focuses on the specification and estimation of econometric models for research in industrial organization. In recent decades, empirical work in industrial organization has moved towards dynamic and equilibrium models, involving econometric methods which have features distinct from those used in other areas of applied economics. These lecture notes, aimed for a first or second-year PhD course, motivate and explain these econometric methods, starting from simple models and building to models with the complexity observed in typical research papers. The covered topics include discrete-choice demand analysis, models of dynamic behavior and dynamic games, multiple equilibria in entry games and partial identification, and auction models.
Download or read book Optimal Product Variety in Radio Markets written by Steven T. Berry and published by . This book was released on 2015 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: A vast theoretical literature shows that inefficient market structures may arise in free entry equilibria. The inefficiency may manifest itself in the number, variety, or quality of products. Previous empirical work demonstrated that excessive entry may obtain in local radio markets. Our paper extends that literature by relaxing the assumption that stations are symmetric, allowing instead for endogenous station differentiation along both horizontal and vertical dimensions. Importantly, we allow station quality to be an unobserved station characteristic. We compute the optimal market structures in local radio markets and find that, in most broadcasting formats, a social planner who takes into account the welfare of market participants (stations and advertisers) would eliminate 50%-60% of the stations observed in equilibrium. In 80%-95% of markets that have high quality stations in the observed equilibrium, welfare could be unambiguously improved by converting one such station into low quality broadcasting. In contrast, it is never unambiguously welfare-enhancing to convert an observed low quality station into a high quality one. This suggests local over-provision of quality in the observed equilibrium, in addition to the finding of excessive entry.
Download or read book Development of Modern Statistics and Related Topics written by Heping Zhang and published by World Scientific. This book was released on 2003 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book encompasses a wide range of important topics. The articles cover the following areas: asymptotic theory and inference, biostatistics, economics and finance, statistical computing and Bayesian statistics, and statistical genetics. Specifically, the issues that are studied include large deviation, deviation inequalities, local sensitivity of model misspecification in likelihood inference, empirical likelihood confidence intervals, uniform convergence rates in density estimation, randomized designs in clinical trials, MCMC and EM algorithms, approximation of p-values in multipoint linkage analysis, use of mixture models in genetic studies, and design and analysis of quantitative traits.
Download or read book Entry Costs and the Macroeconomy written by Germán Gutiérrez and published by International Monetary Fund. This book was released on 2019-11-01 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: We combine a structural model with cross-sectional micro data to identify the causes and consequences of rising concentration in the US economy. Using asset prices and industry data, we estimate realized and anticipated shocks that drive entry and concentration. We validate our approach by showing that the model-implied entry shocks correlate with independently constructed measures of entry regulations and M&As. We conclude that entry costs have risen in the U.S. over the past 20 years and have depressed capital and consumption by about seven percent.
Download or read book Endogenous Quality Selection by Multiproduct Firms written by Chenghuan Sean Chu and published by . This book was released on 2007 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Wiley International Encyclopedia of Marketing 6 Volume Set written by and published by John Wiley & Sons. This book was released on 2011-02-07 with total page 1775 pages. Available in PDF, EPUB and Kindle. Book excerpt: With over 300 entries from hundreds of global experts, this is one of the premier marketing reference resources available worldwide. The 6-volume WIEM provides scholars and professionals with an international guide to marketing concepts and applications The far-reaching new developments, challenges and opportunities that have arisen in recent years are fully reflected in the entries Scholars and professionals will enjoy the flexible, multi-level structure, with entries ranging from topics summaries to short essays reviewing areas of development and debate Entries are further extended by sophisticated cross-referencing both among volumes and between encyclopedia entries and external sources The encyclopedia is also available online For ease of reference, the entries are arranged alphabetically within each of the subject volumes. Designed to encompass the scope of modern marketing, the volumes cover: Volume 1: Marketing Strategy Volume 2: Marketing Research Volume 3: Consumer Behavior Volume 4: Advertising and Integrated Communication Volume 5: Product Innovation and Management Volume 6: International Marketing
Download or read book Global Food Trade and Consumer Demand for Quality written by Barry Krissoff and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consumers have always been concerned about the quality, and particularly the safety, of the foods they eat. In recent years this concern has taken on additional prominence. Consumer focus on food safety has been sharpened by reports about new risks, such as that posed by "mad cow" disease, and about more familiar sources of risk, such as food borne pathogens, pesticides, and hormones. At the same time, some consumers are in creasingly interested in knowing more about how their food is produced and in selecting products based on production practices. Some of the questions consumers are asking in clude whether food is produced with the use of modern biotechnology, whether it is or ganically produced, how animals are treated in meat and egg production systems, and whether food is produced using traditional methods. Recent trends also show increased consumer demand for a variety of food products that are fresh, tasty, and available on a year-round basis. This has fostered increased global trade in food. For example, consumers in temperate climates such as North America are able to buy raspberries throughout the year, and Europeans can enjoy South American coffee. Trade in processed food products is actually increasing more rapidly than trade in agricultural commodities, further addressing the demand for variety among consumers.
Download or read book Essays on firm heterogeneity and quality in international trade written by Eddy Bekkers and published by Rozenberg Publishers. This book was released on 2008 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis is organized as follows. Chapter 2 contains a survey of the three most in‡fluential models on fi…rm heterogeneity and of the most important empirical work on firrm heterogeneity. The chapter starts with a brief review of the homogeneous productivity imperfect competition literature. Chapter 2 …finishes with a comparison of the three most in‡fluential models of fi…rm heterogeneity and the oligopoly model put forward in the thesis. Chapter 3 addresses exporting uncertainty under heterogeneous popularity. Chapter 4 contains the chapter on …firm heterogeneity under oligopoly. Chapter 5 constitutes the models on …firm heterogeneity and endogenous quality. Chapter 6 points out the within-sector specialization model. Chapter 7 addresses the effect of importer characteristics on unit values and the role of markups and quality to explain this effect. Chapter 8 concludes.
Download or read book Competition and Quality in Health Care Markets written by Martin Gaynor and published by Now Publishers Inc. This book was released on 2006 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an economic assessment of the impact of competition on quality in health care markets. This book offers performance standards for competition; findings from economic theory; and, empirical evidence on health care competition and quality.
Download or read book The Economic Theory of Price Indices written by Franklin M. Fisher and published by . This book was released on 1972 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What is the Impact of Increased Business Competition written by Sónia Félix and published by International Monetary Fund. This book was released on 2019-12-13 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.
