Trucks without Bailouts: Equilibrium Product Characteristics for Commercial Vehicles

• 成果类型: Article
• 署名作者: Wollmann, Thomas G.
• 署名单位: University of Chicago
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20160863
• 发表日期: 2018
• 页码: 1364-1406
• 关键词: EAT CEREAL INDUSTRY; multiple equilibria; differentiated products; moment inequalities; market-structure; COMPETITION; selection; oligopoly; MODEL; entry

摘要

The entry and exit of products, rather than firms, serve as the main equilibrating force in many markets, so accurately predicting changes from a merger or bankruptcy should incorporate this behavior. This paper estimates a structural model of the US commercial vehicle market and demonstrates the importance of allowing for endogenous product offerings in the context of the $85 billion automotive industry bailout in 2009. Under alternate policies that facilitate an acquisition or liquidation of GM and Chrysler, product entry and exit moderate markup increases and output decreases by up to three-quarters.