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How Do Entrants Build Market Share? The Role of Demand Frictions
American Economic Review: InsightsWe construct a new dataset to show that successful entrants in the consumer food sector build market share by adding new customers. Entrants reach new customers by entering more geographical markets, placing their product in more stores in these markets,
David Argente +3 more
semanticscholar +1 more source
Social Learning and Strategic Pricing with Rating Systems
Social Science Research NetworkRating systems, widely used in online transactions, often reduce buyers' diverse opinions to summary statistics. To explore the consequences of this coarse aggregation, we analyze a dynamic adverse selection model where buyers share anonymous evaluations
Chia-Hui Chen +2 more
semanticscholar +1 more source
State-Dependent Attention and Pricing Decisions
American Economic Journal: Macroeconomics, 2023This paper studies price-setting decisions under rational inattention. Prices are set by tracking an unobserved target whose distribution is also unknown. Information acquisition is dynamic and fully flexible since, given information acquired previously,
Javier Turén
semanticscholar +1 more source
Natural Gas Vehicles: Consequences for Fuel Markets and the Environment
Energy JournalPolicies to adopt cleaner fuels have become increasingly important, but their impacts on incumbent fuel prices and resulting greenhouse gas emissions remain unclear.
Roberto Amaral-Santos +2 more
semanticscholar +1 more source
The Not-So-Uniform Effects of Trade Secret Protection on Business Entry
American Economic Journal: Economic PolicyWe explore the consequences of trade secret protection for new business formation in the United States. We find the states that adopt the Uniform Trade Secrets Act (UTSA), which enhances intellectual property rights, experience an overall decline in firm
Aslı Leblebicioğlu, Tanseli Savaşer
semanticscholar +1 more source
The American Economic Review, 2017
About one-half of all startups fail within five years, and those that survive grow at vastly different speeds. Using Census microdata, we estimate that most of these differences are determined by ex ante heterogeneity rather than persistent ex post ...
Benjamin W. Pugsley +2 more
semanticscholar +1 more source
About one-half of all startups fail within five years, and those that survive grow at vastly different speeds. Using Census microdata, we estimate that most of these differences are determined by ex ante heterogeneity rather than persistent ex post ...
Benjamin W. Pugsley +2 more
semanticscholar +1 more source
Rising Concentration of Household Shopping, Superstar Firms, and Implications for Retail Markups
American Economic Journal: Applied EconomicsThis paper documents an increase in the concentration of household shopping in the United States retail sector from 2004 to 2019. Despite a growing number of stores, households visit fewer stores, do more one-stop shopping, and increasingly shop at ...
Justin H. Leung, Zhonglin Li
semanticscholar +1 more source
Market Power and Innovation in the Intangible Economy
The American Economic Review, 2019This paper offers a unified explanation for the slowdown of productivity growth, the decline in business dynamism, and the rise of market power. Using a quantitative framework, I show that the rise of intangible inputs, such as software, can explain ...
M. D. Ridder
semanticscholar +1 more source
Insecurity and Firm Displacement: Evidence from Afghan Corporate Phone Records
American Economic Journal: Economic PolicyWe provide empirical evidence on how insecurity affects firm behavior by linking data on deadly terrorist attacks in Afghanistan to geolocated data on corporate mobile phone activity.
S. Herskowitz +5 more
semanticscholar +1 more source
Economics of the Pharmaceutical Industry
Journal of Economic Literature, 2018The pharmaceutical industry accounts for a substantial chunk of the US economy's research and development investments, which have resulted in significant medical breakthroughs.
D. Lakdawalla
semanticscholar +1 more source