Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305458 
Year of Publication: 
2024
Series/Report no.: 
Staff Reports No. 1116
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We study the interaction of customer capital and productivity through brand reallocation across firms. We develop a firm dynamics model with brands as transferable customer capital, heterogeneous firm productivity, and variable markups. We study the matching process between transferable brand capital and core productivity, which can be inefficient with significant welfare implications. We link USPTO trademark data with Nielsen sales data to study the prevalence of brand reallocation and the response of sales and prices to reallocation. Quantitatively, brand reallocation reduces welfare. Optimal policies deviate substantially from the literature due to the complementarity between brand capital and productivity.
Subjects: 
firm dynamics
productivity
market concentration
product innovation
reallocation
mergers & acquisitions
brands
trademarks
intangible assets
JEL: 
O31
O32
O34
O41
D22
D43
L11
L13
L22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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