The Evolution of Market Power in the US Automobile Industry

• 成果类型: Article
• 署名作者: Grieco, Paul L. E.; Murry, Charles; Yurukoglu, Ali
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Boston College; National Bureau of Economic Research; Stanford University; National Bureau of Economic Research
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjad047
• 发表日期: 2024
• 页码: 1201-1253
• 关键词: discrete-choice models; product differentiation; price; elasticities; COMPETITION; oligopoly; rise

摘要

We construct measures of industry performance and welfare in the U.S. automobile market from 1980 to 2018. We estimate a demand model using product-level data on market shares, prices, and attributes, and consumer-level data on demographics, purchases, and stated second choices. We estimate marginal costs assuming Nash-Bertrand pricing. We relate trends in consumer welfare and markups to trends in market structure and the composition of products. Although real prices rose, we find that markups decreased substantially, and the fraction of total surplus accruing to consumers increased. Consumer welfare increased over time due to improved product quality and improved production technology.