Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73602
Authors: 
Hackl, Franz
Kummer, Michael E.
Winter-Ebmer, Rudolf
Zulehner, Christine
Year of Publication: 
2012
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 1207
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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