nep-mkt New Economics Papers
on Marketing
Issue of 2006‒04‒29
eleven papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. With A Little Help From My Enemy: Comparative Advertising. By F. Barigozzi; P. Garella; M. Peitz
  2. Production and Advertising in a Dynamic Hotelling Monopoly. By L. Lambertini
  3. Advertising in a Differential Game of Spatial Competition. By G. Bertuzzi; L. Lambertini
  4. Advertising and Endogenous Exit in a Differentiated Duopoly. By A. Mantovani; G. Mion
  5. Dynamic Advertising under Vertical Product Differentiation. By L. Colombo; L. Lambertini
  6. Advertising with Spillover Effects in a Differential Oligopoly Game With Differentiated Goods. By R. Cellini; L. Lambertini
  7. Advertising in a Differential Oligopoly Game. By R. Cellini; L. Lambertini
  8. Incentives and prices for motor vehicles: what has been happening in recent years? By Carol Corrado; Wendy Dunn; Maria Otoo
  9. Empirical Analysis of Retail Competition: Spatial Differentiation at Wal-Mart,, and Their Competitors By Lesley Chiou
  10. Analysis of Product Efficiency in the Korean Automobile Market from a Consumer’s Perspective By Oh, Inha; Lee, Jeong-Dong; Hwang, Seogwon; Heshmati, Almas
  11. The Diffusion of E-commerce at the Firm Level: Theoretical Implications and Empirical Evidence. By E. Santarelli

  1. By: F. Barigozzi; P. Garella; M. Peitz
  2. By: L. Lambertini
  3. By: G. Bertuzzi; L. Lambertini
  4. By: A. Mantovani; G. Mion
  5. By: L. Colombo; L. Lambertini
  6. By: R. Cellini; L. Lambertini
  7. By: R. Cellini; L. Lambertini
  8. By: Carol Corrado; Wendy Dunn; Maria Otoo
    Abstract: We address the construction of price indexes for consumer vehicles using data collected from a national sample of dealerships. The dataset contains highly disaggregate data on actual sales prices and quantities, along with information on customer cash rebates, financing terms, and much more. Using these data, we are able to capture the actual cash and financing incentives taken by consumers, and we demonstrate that their inclusion in measures of consumer vehicle prices is important. We also document other features of retail vehicle markets that interact and overlap with price measurement issues. In particular, we construct vehicle price indexes under different assumptions about what constitutes a "new" product in moving from one model year to the next. For the period that we study (1999 to 2003), a period during which incentives became more widespread and new model introductions rose, our preferred price index drops faster than the CPI for new vehicles.
    Date: 2006
  9. By: Lesley Chiou (Department of Economics, Occidental College)
    Abstract: This paper quantifies the degree of competition and spatial differentiation across retail channels by exploiting a unique dataset that describes a consumer's choice of store. I estimate a consumer's choice of retailer in the sales market for DVDs among online, mass merchant, electronics, video specialty, and music stores. Using a discrete choice model, I allow for unobserved heterogeneity in preferences for store types and disutility of travel. A consumer's traveling cost varies by income, and substitution occurs proportionately more among stores of the same type. Conditional on price and distance, the average consumer still prefers Wal-Mart over most other stores.
    Keywords: discrete choice, retail, spatial differentiation
    JEL: C25 L81
    Date: 2005–05
  10. By: Oh, Inha; Lee, Jeong-Dong (Seoul National University); Hwang, Seogwon; Heshmati, Almas (Ratio)
    Abstract: A product is called technically inefficient when it has higher price and/or lower quality than others. Technical inefficiency of product has been conceptualized since Lancaster (1966), and empirically measured by many researchers, for example, Fernandez-Castro and Smith (2002) and Lee et al. (2005) among others. If we know further the information about structure of utility function, allocative inefficiency can also be measured. Even though a product is technically efficient with highest quality together with lowest price, it could not be chosen in the market, if it cannot match the preference structure of consumers, i.e. it is allocatively inefficient. This study poses a conceptual and methodological framework to measure technical and allocative efficiency at the product level considering consumer’s choice, which comprises the overall efficiency. Empirically we combine Data Envelopment Analysis (DEA) and discrete choice model to measure the level of inefficiencies. The suggested framework is applied to the Korean automobile market. The relationship between the level of efficiency and market performance in terms of market share is discussed.
    Keywords: DEA; Product Efficiency; Consumers Utility; Automobile Market; Korea
    JEL: C14 C25 D13 D61 L92
    Date: 2006–04–25
  11. By: E. Santarelli

This nep-mkt issue is ©2006 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.