Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68526 
Year of Publication: 
2012
Series/Report no.: 
Reihe Ökonomie / Economics Series No. 287
Publisher: 
Institute for Advanced Studies (IHS), Vienna
Abstract: 
We investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria's largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over the whole product lifecycle. Using this information for 70 digital cameras, we generate instrumental variables for the number of firms in the market based on the shops' entry decisions on other product markets in the past. We find that instrumenting is particularly important for estimating the effect of competition on the markup of the price leader.
Subjects: 
retailing
product lifecycle
market structure
market performance
markup
price dispersion
JEL: 
L11
L13
L81
D43
Document Type: 
Working Paper

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