-
作者：Lerner, J
摘要：This paper empirically examines the ''long purse'' hypothesis (formalized by Bolton and Scharfstein (1990)) that incumbents may drive out entrants through aggressive pricing. I analyze the pricing of 733 disk drives between 1980 and 1988. Drives that are adjacent to those manufactured by thinly capitalized undiversified rivals are priced lower than other drives during the later years in the sample, when little equity financing was available to these firms. The results are robust to controls fo...
-
作者：Gilley, OW; Pace, RK
作者单位：University of Alaska System; University of Alaska Fairbanks
摘要：Economists commonly estimate the value of characteristics not traded in explicit markets by hedonic pricing. Unfortunately, these non-explicitly traded characteristics often display a lack of independent Variation or multicollinearity. Often some prior information on the value of these characteristics is available from submarkets. This paper utilizes this type of prior information to circumvent multicollinearity problems in hedonic pricing models using an inequality restricted Bayesian (IRB) e...
-
作者：Stavins, J
摘要：Entry and exit literature focuses almost exclusively on firm-level decisions, leaving out an important aspect of firm behavior: whether to introduce new models while the firm produces similar goods, and where to locate them in the existing product space, taking into account own models and the possibility of new entry. This paper analyzes model entry and exit decisions in the case of the personal computer market. Differences in new model spatial location between incumbents and entrants are foun...
-
作者：Feenstra, RC
作者单位：National Bureau of Economic Research
摘要：Using the marginal value of characteristics, we show how to construct bounds on the exact hedonic price index. When prices are above marginal costs then our bounds still apply, but the value of characteristics cannot be measured so easily from a hedonic regression. Since the price-cost markups are an omitted variable, they will bias the coefficients obtained. For a special class of utility functions, we argue that a linear regression will still provide a measure of the marginal value of charac...
