Essays in theoretical and empirical industrial organization
Informative advertising and product quality . The literature on advertising when firms produce goods of different qualities tends to find that the high quality firm advertises more. This result does not mesh with field data on advertising. We investigate a model of vertical differentiation with one high quality and one low quality firm, where consumers are uninformed about the firms' prices, locations, and respective qualities. Firms send messages about their price, quality, and location via advertisements. We characterize the equilibrium of a game where firms simultaneously choose their levels of advertising and their prices. We find that the high quality firm does not always advertise more. We characterize this result with respect to differences in production costs. A data set for the analysis of joint product, acquisition, and alliance decisions: The Internet software market . We describe the collection of a unique set of data on firms producing at least one of eight different Internet software components. The data covers the period from quarter one of 1998 to quarter one of 2001. The set of firms on which we collect data is exhaustive for these software markets and includes both public and private firms. The data set consists of information by quarter about the subset of the eight products each firm produces, the number of releases of each product, the mergers and acquisitions between firms, the strategic alliances between firms, and financial information for the public firms. Strategic alliances in the Internet software market . We examine the static incentives for firms to form networks of alliances in a market with interrelated products. We provide a theoretical framework for the examination of this problem focusing on two types of firms: diversified firms and focused firms. Diversified firms have a propensity to introduce new products whereas focused firms have a propensity to improve the quality of existing goods. We consider the incentives for these types of firms to enter into alliances when they have partially disjoint sets of goods. We test the theory on a unique set of data described. We find that diversified firms tend to ally in order to have access to a higher quality product that it has in common with a focused firm. Focused firms, on the other hand, ally in order to have access to new products.
|Year of publication:||
|Authors:||Weber, Brandon Kyle|
|Type of publication:||Other|
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