The Experts below are selected from a list of 56157 Experts worldwide ranked by ideXlab platform
John Ries - One of the best experts on this subject based on the ideXlab platform.
-
increasing returns versus national Product Differentiation as an explanation for the pattern of u s canada trade
The American Economic Review, 2001Co-Authors: Keith Head, John RiesAbstract:We evaluate two alternative models of international trade in differentiated Products. An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases in its share of output. In contrast, a constant returns model with national Product Differentiation predicts a less than proportionate increase. We examine a panel of U.S. and Canadian manufacturing industries to test the models. Although we find support for either model, depending on whether we estimate based on within or between variation, the preponderance of the evidence supports national Product Differentiation.
-
increasing returns versus national Product Differentiation as an explanation for the pattern of u s canada trade
The American Economic Review, 2001Co-Authors: Keith Head, John RiesAbstract:An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases in its share of output. In contrast, a constant returns model with national Product Differentiation predicts a less than proportionate increase. We examine a panel of U.S. and Canadian manufacturing industries to test the models. Although we find support for either model, depending on whether we estimate based on within or between variation, the preponderance of the evidence supports national Product
Barbara J Spencer - One of the best experts on this subject based on the ideXlab platform.
-
intra industry trade with bertrand and cournot oligopoly the role of endogenous horizontal Product Differentiation
Research in Economics, 2015Co-Authors: James A. Brander, Barbara J SpencerAbstract:Abstract This paper investigates the effect of endogenous horizontal Product Differentiation on trade patterns and the gains from trade under Bertrand and Cournot oligopoly. If trade occurs, Bertrand firms always differentiate their Products more that Cournot firms. However, sufficiently high Differentiation costs can prevent Product Differentiation. Trade in homogeneous Products never takes place under Bertrand competition. Bertrand firms will either differentiate their Products or will not export. Cournot firms, however, may trade in either homogeneous or differentiated Products. Product Differentiation can significantly increase the gains from trade under both Cournot and Bertrand oligopoly.
-
intra industry trade with bertrand and cournot oligopoly the role of endogenous horizontal Product Differentiation
Social Science Research Network, 2015Co-Authors: James A. Brander, Barbara J SpencerAbstract:This paper investigates the effect of endogenous horizontal Product Differentiation on trade patterns and the gains from trade under Bertrand and Cournot oligopoly. Firms differentiate their Products to mitigate competition, but only if the investment required is not too high. Investment in Product Differentiation takes place in a much wider range of cases and results in a greater difference between Products under Bertrand than Cournot competition. In our model, trade in homogeneous Products never takes place under Bertrand competition: Bertrand firms export only if they differentiate their Products. Cournot firms may trade in either homogeneous or differentiated Products. If there is trade, consumers tend to be better off with Bertrand than Cournot competition due to greater Product Differentiation and more aggressive pricing, but higher levels of investment can raise Bertrand profit above Cournot profit and also above the monopoly profit at autarky when investment costs are sufficiently low.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
-
endogenous horizontal Product Differentiation under bertrand and cournot competition revisiting the bertrand paradox
National Bureau of Economic Research, 2015Co-Authors: James A. Brander, Barbara J SpencerAbstract:This paper provides a new and simple model of endogenous horizontal Product Differentiation based on a standard demand structure derived from quadratic utility. One objective of the paper is to explain the “empirical Bertrand paradox” – the failure to observe homogeneous Product Bertrand oligopoly, while homogeneous Product Cournot oligopoly has significant empirical relevance. In our model firms invest in Product Differentiation if Differentiation investments are sufficiently effective (i.e. if Differentiation is not too costly). The threshold level of Differentiation effectiveness needed to induce such investments is an order of magnitude less for Bertrand firms than for Cournot firms. Thus there is a wide range over which Bertrand firms differentiate their Products but Cournot firms do not. If Cournot firms do choose to differentiate their Products, corresponding Bertrand firms always differentiate more. We also establish the important insight that if Product Differentiation is endogenous Bertrand firms may charge higher prices and earn higher profits than corresponding Cournot firms, in contrast to the general presumption that Bertrand behavior is more competitive than Cournot behavior. Interestingly, consumer surplus increases with Differentiation in the Cournot model but, due to sharply increasing prices, decreases with Differentiation in the Bertrand model.
-
intra industry trade with bertrand and cournot oligopoly the role of endogenous horizontal Product Differentiation
National Bureau of Economic Research, 2015Co-Authors: James A. Brander, Barbara J SpencerAbstract:This paper investigates the effect of endogenous horizontal Product Differentiation on trade patterns and the gains from trade under Bertrand and Cournot oligopoly. Firms differentiate their Products to mitigate competition, but only if the investment required is not too high. Investment in Product Differentiation takes place in a much wider range of cases and results in a greater difference between Products under Bertrand than Cournot competition. In our model, trade in homogeneous Products never takes place under Bertrand competition: Bertrand firms export only if they differentiate their Products. Cournot firms may trade in either homogeneous or differentiated Products. If there is trade, consumers tend to be better off with Bertrand than Cournot competition due to greater Product Differentiation and more aggressive pricing, but higher levels of investment can raise Bertrand profit above Cournot profit and also above the monopoly profit at autarky when investment costs are sufficiently low.
Gordon M Phillips - One of the best experts on this subject based on the ideXlab platform.
-
text based network industries and endogenous Product Differentiation
Journal of Political Economy, 2016Co-Authors: Gerard Hoberg, Gordon M PhillipsAbstract:We study how firms differ from their competitors using new time-varying measures of Product similarity based on text-based analysis of firm 10-K Product descriptions. This year-by-year set of Product similarity measures allows us to generate a new set of industries in which firms can have their own distinct set of competitors. Our new sets of competitors explain specific discussion of high competition, rivals identified by managers as peer firms, and changes to industry competitors following exogenous industry shocks. We also find evidence that firm R&D and advertising are associated with subsequent Differentiation from competitors, consistent with theories of endogenous Product Differentiation.
-
text based network industries and endogenous Product Differentiation
Social Science Research Network, 2015Co-Authors: Gerard Hoberg, Gordon M PhillipsAbstract:We study how firms differ from their competitors using new time-varying measures of Product similarity based on text-based analysis of firm 10-K Product descriptions. This year-by-year set of Product similarity measures allows us to generate a new set of industries where firms can have their own distinct set of competitors. Our new sets of competitors explain specific discussion of high competition, rivals identified by managers as peer firms and changes to industry competitors following exogenous industry shocks. We also find evidence that firm R&D and advertising are associated with subsequent Differentiation from competitors, consistent with theories of endogenous Product Differentiation.
-
text based network industries and endogenous Product Differentiation
Research Papers in Economics, 2010Co-Authors: Gerard Hoberg, Gordon M PhillipsAbstract:We study how firms differ from their competitors using new time-varying measures of Product Differentiation based on text-based analysis of Product descriptions from 50,673 firm 10-K statements filed yearly with the Securities and Exchange Commission. This year-by-year set of Product Differentiation measures allows us to generate a new set of industries and corresponding new measures of industry competition where firms can have their own distinct set of competitors. Our new sets of industry competitors better explain specific discussion of high competition by management, rivals identified by managers as peer firms and firm characteristics such as profitability and leverage than do existing classifications. We also find evidence that firm R&D and advertising are associated with subsequent Differentiation from competitors, consistent with theories of endogenous Product Differentiation.
Keith Head - One of the best experts on this subject based on the ideXlab platform.
-
increasing returns versus national Product Differentiation as an explanation for the pattern of u s canada trade
The American Economic Review, 2001Co-Authors: Keith Head, John RiesAbstract:We evaluate two alternative models of international trade in differentiated Products. An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases in its share of output. In contrast, a constant returns model with national Product Differentiation predicts a less than proportionate increase. We examine a panel of U.S. and Canadian manufacturing industries to test the models. Although we find support for either model, depending on whether we estimate based on within or between variation, the preponderance of the evidence supports national Product Differentiation.
-
increasing returns versus national Product Differentiation as an explanation for the pattern of u s canada trade
The American Economic Review, 2001Co-Authors: Keith Head, John RiesAbstract:An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases in its share of output. In contrast, a constant returns model with national Product Differentiation predicts a less than proportionate increase. We examine a panel of U.S. and Canadian manufacturing industries to test the models. Although we find support for either model, depending on whether we estimate based on within or between variation, the preponderance of the evidence supports national Product
David M Levinson - One of the best experts on this subject based on the ideXlab platform.
-
agent based model of price competition capacity choice and Product Differentiation on congested networks
Journal of Transport Economics and Policy, 2008Co-Authors: Lei Zhang, David M LevinsonAbstract:Using consistent agent-based techniques, this research explores the welfare consequences of Product Differentiation on congested networks. The economic analysis focuses on the source, evolution, measurement, and impact of Product Differentiation with heterogeneous users on a mixed ownership network. Path Differentiation and space Differentiation are defined and measured for a base scenario and several variants. The findings favour a fixed-rate road pricing policy compared to complete pricing freedom on toll roads. It is also shown that the impact of Production Differentiation on welfare is not always positive and depends on the level of user heterogeneity.
-
agent based model of price competition capacity choice and Product Differentiation on congested networks
Transportation Research Board 87th Annual MeetingTransportation Research Board, 2008Co-Authors: Lei Zhang, David M LevinsonAbstract:Using consistent agent-based techniques, this research models the decision-making processes of users and infrastructure owner/operators to explore the welfare consequence of price competition, capacity choice, and Product Differentiation on congested transportation networks. Component models include: (1) An agent-based travel demand model wherein each traveler has learning capabilities and unique characteristics (e.g. value of time); (2) Econometric facility provision cost models; and (3) Representations of road authorities making pricing and capacity decisions. Different from small-network equilibrium models in prior literature, this agent-based model is applicable to pricing and investment analyses on large complex networks. The subsequent economic analysis focuses on the source, evolution, measurement, and impact of Product Differentiation with heterogeneous users on a mixed ownership network (with tolled and untolled roads). Two types of Product Differentiation in the presence of toll roads, path Differentiation and space Differentiation, are defined and measured for a base case and several variants with different types of price and capacity competition and with various degrees of user heterogeneity. The findings favor a fixed-rate road pricing policy compared to complete pricing freedom on toll roads. It is also shown that the relationship between net social benefit and user heterogeneity is not monotonic on a complex network with toll roads.
