We explore how firms respond to downstream product shocks. We find that affected firms increase R&D and make additional safety-related investments in their existing assets-in-place. These investments vary with firm capabilities and across shock severity. Competitors appear to vicariously learn...

This paper examines the relationship between exogenous demand shock and market structure in India’s influenza vaccine markets. Using a novel dataset of detailed purchasing information for vaccines in India, and exploiting the 2009-10 global H1N1 pandemic as an exogenous demand shock, we...