|
on Industrial Organization |
| By: | Ursel Baumann; Zoë B. Cullen; Ester Faia; Annalisa Ferrando; Ricardo Perez-Truglia; Judit Rariga |
| Abstract: | How well does innovation diffuse across geographic boundaries? To shed light on this question, we present a large-scale field experiment involving 3, 300 firms across twelve European Union countries. We elicit firms' perceptions of the share of similar firms in their own country that had invested in artificial intelligence (AI), as well as the corresponding share among similar firms in Germany, France, and Italy. We randomly provide half of the sample with accurate information about both domestic and foreign AI investment. We show that firms substantially underestimate competitors' current AI investment, both domestically and abroad, and that they update their expectations about competitors' future AI investment in response to the information treatment. The treatment also causes a statistically significant increase in firms' own expected AI investment rate (p-value |
| JEL: | C93 D22 L21 O33 |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35314 |
| By: | Yi Lee; Shengyu Li; Mark J. Roberts |
| Abstract: | This paper develops and estimates a structural model of multiproduct production that allows plant-product quality and factor-augmenting input efficiency. Using plant-level data from Taiwan’s textile industry, we specify a translog multiproduct cost function with input share and output supply equations and estimate the system of equations via GMM. The model recovers plant-specific input efficiencies, output qualities, economies of scale and scope, and substitution elasticities. It does not impose restrictions for non-joint production or input-output separability and does not require imputing product-level input allocations. We document increasing returns to scale, substitutability between labor and materials, and cost complementarities from joint production. Variation in labor shares and product mixes are jointly driven by large and persistent heterogeneity in both input efficiencies and output qualities. A multilateral productivity index shows that variation in input efficiency and output quality is the dominant source of productivity differences across plants. |
| JEL: | D24 L11 L15 O47 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35274 |
| By: | Tabuchi, Takatoshi; Wang, Congcong; Zhu, Xiwei |
| Abstract: | Abstract We consider that heterogeneous firms take one of the following strategies: over-the-counter sales, multiple regions, and delivery in a monopolistically competitive market in a two-region economy. Our findings indicate that the most efficient firms choose to operate in multiple regions, the second most efficient firms choose to deliver, the third most efficient firms choose to sell over-the-counter to consumers in two regions, and the least efficient firms choose to sell over-the-counter to consumers in one region. We show that technological progress increases the share of multiregional firms whose headquarters are located in each region and that the social welfare is higher in a larger region, where a larger market size leads to greater product variety and lower prices. Through numerical simulations, we demonstrate that multiregional firms tend to locate in regions with smaller populations to avoid intense competition and that delivery via spatial price discrimination results in lower welfare than over-the-counter sales by mill pricing, contrary to the literature. |
| Keywords: | multiregional firms, delivery, over-the-counter sales, monopolistic competition, procompetitive effect |
| JEL: | D1 R00 |
| Date: | 2026–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129009 |
| By: | Yuxin Liu; M. Amin Rahimian |
| Abstract: | Information sharing among competing suppliers can improve decision-making under uncertainty, yet strategic concerns regarding rival exploitation often deter voluntary disclosure. We study information-sharing mechanisms in a Cournot oligopoly with uncertain demand, where a platform aggregates suppliers' signals through privacy-preserving channels and may also possess an exogenous external signal. The central challenge is to balance strategic safety with informational utility: privacy noise reduces the exposure of individual signals, but also lowers the value of the shared information pool. We first characterize a baseline setting in which access to aggregated information is contingent on participation. In a two-firm market without an external signal, firms refuse to share regardless of the privacy level. In an \(n\)-firm market, sharing may arise even without privacy safeguards because non-participating firms lose access to the aggregated signal. Building on this baseline, we show that privacy protection alone is insufficient to incentivize disclosure; it must be combined with a sufficiently informative external signal. We further show that firms with more accurate private signals require stronger privacy protection. Overall, our results characterize the sharing-feasible region and highlight the complementarity between privacy design and the external information environment. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2606.02348 |
| By: | Paul, Arindam; Kumar Behera, Manash; Sahoo, Dukhabandhu; Mohapatra, Souryabrata |
| Abstract: | Energy risks in the post-COVID-19 era pose significant challenges for human civilisation, particularly in the Asia-Pacific region, which remains highly vulnerable to energy crises. Although renewable energy is widely regarded as a strategic response, empirical research examining the nexus between energy risks and the renewable energy transition in this region remains limited. This study addresses the gap by investigating the impacts of energy uncertainty and insecurity on renewable energy transition across nine Asia-Pacific economies from 1991-2021. Employing the method of moments quantile regression, the findings reveal that both energy risks accelerate the transition, with stronger effects observed at more advanced stages. Furthermore, GDP per capita and foreign direct investment facilitate the transition, while green innovation unexpectedly hinders progress, reflecting potential underinvestment in environmental technologies. Causality tests confirm a unidirectional relationship from energy transition to uncertainty. The results underscore the urgency of enhancing renewable infrastructure, storage capacity, and foreign investment. |
| Keywords: | Energy-related uncertainty; Energy insecurity; Energy transition; Method of moments quantile regression; Asia-Pacific |
| JEL: | C33 D81 Q42 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128214 |