nep-ind New Economics Papers
on Industrial Organization
Issue of 2019‒11‒04
six papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Monopoly in Real Life - The Housing Market, Finance and Inequality By Baur, Dirk
  2. Information in a Monopolist's Credence Good Market By Jost, Peter-J.; Reik, Steffen; Ressi, Anna
  3. Advertising and Content Differentiation: Evidence from YouTube By Kerkhof, Anna
  4. The role of multinational company strategies in structuring global supply chains in the automotive industry By Pardi, Tommaso.
  5. Import competition and firm productivity: Evidence from German manufacturing By Bräuer, Richard; Mertens, Matthias; Slavtchev, Viktor
  6. Corrupting Cartels: An Overview of the Petrobras Case By Spagnolo, Giancarlo; Barbosa, Kleno

  1. By: Baur, Dirk
    JEL: D10 D31 D42 D63 E47 E58 R30
    Date: 2019
  2. By: Jost, Peter-J.; Reik, Steffen; Ressi, Anna
    JEL: D42 D82 L0 L10 L15 I11
    Date: 2019
  3. By: Kerkhof, Anna
    Abstract: Does advertising revenue increase or diminish content differentiation in media markets? This paper shows that an increase in the technically feasible number of ad breaks per video leads to an increase in content differentiation between several thousand YouTube channels. I exploit two institutional features of YouTube's monetization policy to identify the causal effect of advertising on the YouTubers' content choice. The analysis of around one million YouTube videos shows that advertising leads to a twenty percentage point reduction in the YouTubers' probability to duplicate popular content, i.e., content in high demand by the audience. I also provide evidence of the economic mechanism behind the result: popular content is covered by many competing YouTubers; hence, viewers who perceive advertising as a nuisance could easily switch to a competitor if a YouTuber increased her number of ad breaks per video. This is less likely, however, when the YouTuber differentiates her content from her competitors.
    Keywords: advertising,content differentiation,economics of digitization,horizontal product differentiation,long tail,media diversity,user-generated content,YouTube
    JEL: D22 L15 L82 L86
    Date: 2019
  4. By: Pardi, Tommaso.
    Keywords: 1, 2, 3
    Date: 2019
  5. By: Bräuer, Richard; Mertens, Matthias; Slavtchev, Viktor
    Abstract: This study analyses empirically the effects of import competition on firm productivity (TFPQ) using administrative firm-level panel data from German manufacturing. We find that only import competition from high-income countries is associated with positive incentives for firms to invest in productivity improvement, whereas import competition from middle- and low-income countries is not. To rationalise these findings, we further look at the characteristics of imports from the two types of countries and the effects on R&D, employment and sales. We provide evidence that imports from high-income countries are relatively capital-intensive and technologically more sophisticated goods, at which German firms tend to be relatively good. Costly investment in productivity appears feasible reaction to such type of competition and we find no evidence for downscaling. Imports from middle- and low-wage countries are relatively labour-intensive and technologically less sophisticated goods, at which German firms tend to generally be at disadvantage. In this case, there are no incentives to invest in innovation and productivity and firms tend to decline in sales and employment.
    Keywords: productivity,multi-product firms,import competition
    JEL: D22 D24 F10 F14 F60 F61 L25
    Date: 2019
  6. By: Spagnolo, Giancarlo (Stockholm Institute of Transition Economics); Barbosa, Kleno (Stockholm Institute of Transition Economics)
    Abstract: This paper provides an overview of the corruption case and the connected cartels that affected one of the biggest Brazilian state-owned companies, Petrobras, and the highly controversial ‘Operation Car Wash’. We focus on the behavior of cartel members and study the size of the contracts affected or potentially affected by the illegal activity, comparing them with comparable sets of contracts selected with three different matching approaches.
    Keywords: Corruption; Cartels; Brazil
    JEL: F19
    Date: 2019–10–25

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