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Entry, Pricing and Product Design in an Initially Monopolized Market

Davis, Steven J.; Murphy, Kevin M.; Topel, Robert H. - 2021

We analyze entry, pricing and product design in a model with differentiated products. Under plausible conditions, entry into an initially monopolized market leads to higher prices for some, possibly all, consumers. Entry can induce a misallocation of goods to consumers, segment the market in a...

Persistent link: https://www.econbiz.de/10013228967

An Economic Analysis of Platform Sharing

Ghosh, Arghya - 2010

We explore the managerial implications and economic consequences of platform sharing under models of horizontal and vertical product differentiation. By using a common platform across different products, firms can save on fixed costs for platform development. At the same time, platform sharing...

Persistent link: https://www.econbiz.de/10012760112

Fragmentation and Trade in Value Added Over Four Decades

Johnson, Robert C. - 2012

from 1970 to 2009. For the world, the ratio of value added to gross trade falls by ten to fifteen percentage points, with …

Persistent link: https://www.econbiz.de/10013104723

Export or Merge? Proximity vs. Concentration in Product Space

Muendler, Marc-Andreas - 2013

This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...

Persistent link: https://www.econbiz.de/10013071518

Firms, Contracts, and Trade Structure

Antràs, Pol - 2021

Roughly one-third of world trade is intrafirm trade. This paper starts by unveiling two systematic patterns in the …

Persistent link: https://www.econbiz.de/10013247404

Undertstanding the Home Market Effect and the Gravity Equation : the Role of Differentiating Goods

Feenstra, Robert C.; Markusen, James R.; Rose, Andrew Kenan - 2021

This paper argues that the theoretical foundations for the gravity equation are general, while the empirical performance of the gravity equation is specific to the type of goods examined. Most existing theory for the gravity equation depends on the assumption of differentiated goods. We show...

Persistent link: https://www.econbiz.de/10013248683

The Variety and Quality of a Nation'S Trade

Hummels, David; Klenow, Peter J. - 2021

Not surprisingly, big countries trade more than small countries. In this paper we use data on shipments by 110 exporters to 59 importers in 5,000 product categories to ask: how? Do big countries trade larger quantities of a common set of goods (the intensive margin), a larger set of goods (the...

Persistent link: https://www.econbiz.de/10013231995

Beyond Competitive Devaluations : The Monetary Dimensions of Comparative Advantage

Bergin, Paul R. - 2019

Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a...

Persistent link: https://www.econbiz.de/10012871944

Growth, Trade, and Inequality

Grossman, Gene M. - 2014

We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods. Each research project generates a new variety of the differentiated...

Persistent link: https://www.econbiz.de/10013047018

Competing Engines of Growth : Innovation and Standardization

Acemoglu, Daron - 2010

production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are … adapted to be produced using unskilled labor. Our framework highlights a number of novel results. First, standardization is … standardization rate (and of competition). Second, we characterize the growth and welfare maximizing speed of standardization. We show …

Persistent link: https://www.econbiz.de/10013144153