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The Evolution of Price Dispersion in the European Car Market

Goldberg, Pinelopi Koujianou; Verboven, Frank - C.E.P.R. Discussion Papers - 1998

prices to these fluctuations. These facts are analysed within the framework of a multi-product oligopoly model with product …

Persistent link: https://www.econbiz.de/10005661944

Competition and Trust: Evidence from German Car Manufacturers

Felli, Leonardo; Koenen, Johannes; Stahl, Konrad - C.E.P.R. Discussion Papers - 2011

We explore the determinants and effects of trust relationships between upstream suppliers and downstream producers. Using unique survey data on individual supplier-buyer relationships in the German automotive industry, we show, by means of different measures of supplier-buyer trust, that higher...

Persistent link: https://www.econbiz.de/10008854478

Reserve Price Effects in Auctions: Estimates from Multiple RD Designs

Choi, Syngjoo; Nesheim, Lars; Rasul, Imran - C.E.P.R. Discussion Papers - 2015

We present evidence from 260,000 online auctions of second-hand cars to identify the impact of public reserve prices on auction outcomes. We exploit multiple discontinuities in the relationship between reserve prices and vehicle characteristics to present causal RD estimates of reserve price...

Persistent link: https://www.econbiz.de/10011201354

Consumer valuation of fuel costs and the effectiveness of tax policy: Evidence from the European car market

Grigolon, Laura; Reynaert, Mathias; Verboven, Frank - C.E.P.R. Discussion Papers - 2014

To what extent do car buyers undervalue future fuel costs, and what does this imply for the effectiveness of alternative tax policies? To address both questions, we show it is crucial to account for consumer heterogeneity in mileage and other dimensions. We use detailed product-level data for a...

Persistent link: https://www.econbiz.de/10011145447

Competition in the Pharmaceutical Industry: How do Quality Differences Shape Advertising Strategies?

de Frutos, Maria-Angeles; Ornaghi, Carmine; Siotis, Georges - C.E.P.R. Discussion Papers - 2010

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side e¤ects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising strategies are strategic...

Persistent link: https://www.econbiz.de/10008680762

Competing Bimetallic Ratios: Amsterdam, London and Bullion Arbitrage in the Mid-18th Century

Nogues-Marco, Pilar - C.E.P.R. Discussion Papers - 2013

This article analyzes the stability of bimetallism for countries operating in integrated bullion markets who enact different legal ratios. I articulate a new theoretical framework to demonstrate that two countries can both be bimetallic only if they coordinate their legal ratios. The theoretical...

Persistent link: https://www.econbiz.de/10011084296

Toxic Arbitrage

Foucault, Thierry; Kozhan, Roman; Tham, Wing Wah - C.E.P.R. Discussion Papers - 2014

High frequency arbitrage opportunities sometimes arise when the price of one asset follows, with a lag, changes in the … suppliers to the risk of being picked off by arbitrageurs. Hence, more frequent toxic arbitrage opportunities and a faster … triangular arbitrage opportunities in the FX market. In our sample, a 1% increase in the likelihood that a toxic arbitrage …

Persistent link: https://www.econbiz.de/10011083979

Arbitrage in the Foreign Exchange Market: Turning on the Microscope

Akram, Farooq; Rime, Dagfinn; Sarno, Lucio - C.E.P.R. Discussion Papers - 2008

This paper provides real-time evidence on the frequency, size, duration and economic significance of arbitrage …

Persistent link: https://www.econbiz.de/10005124143

Covered Purchasing Power Parity, Ex-Ante PPP and Risk Aversion

Moore, Michael J - C.E.P.R. Discussion Papers - 1992

The standard expectations augmented theory of ex-ante purchasing power parity (PPP), which was first developed by Roll, assumes that agents are risk neutral. A Covered Purchasing Power Condition is developed which holds for the general case of risk aversion. A risk-augmented form of ex-ante PPP...

Persistent link: https://www.econbiz.de/10005124291

Why do Pre-tax Car Prices Differ so Much Across European Countries?

Flam, Harry; Nordström, Håkan - C.E.P.R. Discussion Papers - 1995

consumer arbitrage difficult and costly. In a sample covering 43 models making up 80% of car sales in 11 countries in 1989 …

Persistent link: https://www.econbiz.de/10005067533