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Full-Text Articles in Econometrics
Supplementary Material To "Age Effects, Unobserved Characteristics And Hedonic Price Indexes: The Spanish Car Market In The 1990'S", Xosé-Luís Varela-Irimia
Supplementary Material To "Age Effects, Unobserved Characteristics And Hedonic Price Indexes: The Spanish Car Market In The 1990'S", Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
This supplement presents all the results of the paper "Age effects, unobserved characteristics and hedonic price indexes: The Spanish car market in the 1990's".
Multi-Stage Oligopoly Models With Nested Logit Demand Structures: A Simplifying Approach, Xosé-Luís Varela-Irimia
Multi-Stage Oligopoly Models With Nested Logit Demand Structures: A Simplifying Approach, Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
In oligopolistic markets where firms sell multiple products in different segments the nested logit framework is a common approach to model durable goods demands. In these settings, multi-stage oligopoly models are used to study relevant firm decisions, such as market entry or the relation between competition and location. The rationale for making decisions in these contexts is comparing the profitability of the alternative choices. However, solving these models to obtain profitability measures easily becomes a complex task when using nested logit demands. This paper shows that when within-segment firm shares are equal across segments, the analytical expression for equilibrium profits …
Age Effects, Unobserved Characteristics And Hedonic Price Indexes: The Spanish Car Market In The 1990'S, Xosé-Luís Varela-Irimia
Age Effects, Unobserved Characteristics And Hedonic Price Indexes: The Spanish Car Market In The 1990'S, Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
This paper computes and compares alternative quality-adjusted price indexes for new cars in Spain in the period 1990-2000. The proposed hedonic approach simultaneously controls for time-invariant unobserved product effects and age effects, that can be interpreted as a proxy for time-variant unobservables. The results show that the non-adjusted price index largely overstates the increase in the cost of living induced by changes in car prices and that the previous evidence for this market have not measured the real extent of that bias, probably due to the omission of controls for unobservables. It is also shown that omitting age effects can …
Profitability, Uncertainty And Multi-Product Firm Product Proliferation: The Spanish Car Industry, Xosé-Luís Varela-Irimia
Profitability, Uncertainty And Multi-Product Firm Product Proliferation: The Spanish Car Industry, Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
This article studies how product introduction decisions relate to profitability and uncertainty in the context of multi-product firms and product differentiation. These two features, common to many modern industries, have received little attention in the literature as compared to the classical problem of firm entry, even if the determinants of firm and product entry are quite different. The theoretical predictions about the sign of the impact of uncertainty on product entry are not conclusive. Therefore, an econometric model relating firms’ product introduction decisions with profitability and profit uncertainty is proposed. Firm’s estimated profits are obtained from a structural model of …
Entry Costs And Economies Of Scope In Multiproduct Firms' Decisions, Xosé-Luís Varela-Irimia
Entry Costs And Economies Of Scope In Multiproduct Firms' Decisions, Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
This paper computes the scope economies associated to the commercialization of several product varieties by multiproduct firms, in a dynamic oligopoly setting. Goods are differentiated and firms decide on firm entry and exit, product entry and exit, quality and pricing. The model is applied to the Spanish automobile market. Results show moderate entry costs and substantial cost reductions when introducing a second product as compared to the first, indicating that multiproduct firms benefit from strong economies of scope when expanding their range of products. However, those economies disappear after five products have been introduced, suggesting a U-shaped curve for entry …
A Descriptive Analysis Of The Spanish Automobile Market In The 1990'S, Xosé-Luís Varela-Irimia
A Descriptive Analysis Of The Spanish Automobile Market In The 1990'S, Xosé-Luís Varela-Irimia
Xosé-Luís Varela-Irimia
This paper provides an overview of the automobile market in Spain during the 1990's, from the point of view of quality improvement and new product commercialization trends.