Text-Based Network Industries and Endogenous Product Differentiation

• 成果类型: Article
• 署名作者: Hoberg, Gerard; Phillips, Gordon
• 署名单位: University of Southern California; Dartmouth College; National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/688176
• 发表日期: 2016
• 页码: 1423-1465
• 关键词: research-and-development; MARKET; COMPETITION; mergers; entry; media

摘要

We study how firms differ from their competitors using new time-varying measures of product similarity based on text-based analysis of firm 10-K product descriptions. This year-by-year set of product similarity measures allows us to generate a new set of industries in which firms can have their own distinct set of competitors. Our new sets of competitors explain specific discussion of high competition, rivals identified by managers as peer firms, and changes to industry competitors following exogenous industry shocks. We also find evidence that firm R&D and advertising are associated with subsequent differentiation from competitors, consistent with theories of endogenous product differentiation.