scholarly journals When Do Secondary Markets Harm Firms?

2013 ◽  
Vol 103 (7) ◽  
pp. 2911-2934 ◽  
Author(s):  
Jiawei Chen ◽  
Susanna Esteban ◽  
Matthew Shum
Keyword(s):  
Transaction Costs ◽  
Automobile Industry ◽  
Durable Goods ◽  
Secondary Market ◽  
Model Parameters ◽  
Secondary Markets ◽  
Future Production ◽  
The Us ◽  
Using Data ◽  
Number Of Firms

To investigate whether secondary markets aid or harm durable goods manufacturers, we build a dynamic model of durable goods oligopoly with transaction costs in the secondary market. Calibrating model parameters using data from the US automobile industry, we find the net effect of opening the secondary market is to decrease new car manufacturers' profits by 35 percent. Counterfactual scenarios in which the size of the used good stock decreases, such as when products become less durable, when the number of firms decreases, or when firms can commit to future production levels, increase the profitability of opening the secondary market. (JEL L13, L25, L62, L81)

scholarly journals A Quantitative Analysis of the Used-Car Market

2014 ◽  
Vol 104 (11) ◽  
pp. 3668-3700 ◽  
Author(s):  
Alessandro Gavazza ◽  
Alessandro Lizzeri ◽  
Nikita Roketskiy
Keyword(s):  
Quantitative Analysis ◽  
Willingness To Pay ◽  
Transaction Costs ◽  
Consumer Surplus ◽  
Welfare Effects ◽  
Secondary Markets ◽  
Car Market ◽  
The Us ◽  
Used Car ◽  
Aggregate Effects

Quantitatively, we investigate the allocative and welfare effects of secondary markets for cars. An important source of gains from trade in these markets is the heterogeneity in the willingness to pay for higher-quality (newer) goods, but transaction costs are an impediment to instantaneous trade. Calibration of the model successfully matches several aggregate features of the US and French used-car markets. Counterfactual analyses show that transaction costs have a large effect on volume of trade, allocations, and the primary market. Aggregate effects on consumer surplus and welfare are relatively small, but the effect on lower-valuation households can be large. (JEL D23, L62, L81)

scholarly journals When a Master Dies: Speculation and Asset Float

2021 ◽  
Author(s):  
Julien Pénasse ◽  
Luc Renneboog ◽  
José A Scheinkman
Keyword(s):  
Premature Death ◽  
Short Selling ◽  
Secondary Market ◽  
Future Production ◽  
Speculative Trading ◽  
Permanent Increase ◽  
Negative Shock ◽  
Market Volume

Abstract An artist’s death constitutes a negative shock to his future production; death permanently decreases the artist’s float. We use this shock to test predictions of speculative trading models with short-selling constraints. As predicted in our model, we find that an artist’s premature death leads to a permanent increase in prices and turnover; this effect being larger for more famous artists. We document that premature death increases prices (by 54.7%) and secondary market volume (by 63.2%).

EXPRESS: Commercial Success through Commercials? Advertising and Pay TV Operators

2021 ◽  
pp. 002224372110281
Author(s):  
Joonhyuk Yang ◽  
Jung Youn Lee ◽  
Pradeep K. Chintagunta
Keyword(s):  
Television Advertising ◽  
Service Market ◽  
Unit Costs ◽  
Cost Efficiencies ◽  
Pay Television ◽  
National Advertising ◽  
The Us ◽  
Television Service ◽  
Asymmetric Cost ◽  
Using Data

The US pay television service market had been dominated by cable operators until the nationwide entry of satellite operators in the early 1990s. The latter have been consistently growing their footprints since. This study documents the role of television advertising to explain the success. Using data on US households’ subscription choices and operators’ advertising decisions, the authors document both demand- and supply-side conditions conducive to the growth of the satellite operators. First, the authors find consumers in this market were sensitive to advertising, and especially so to that of the satellite operators (ad-elasticities of about .05-.06 for satellite operators vs. .02 for cable operators). The authors employ a border strategy to demonstrate advertising-elastic demand and discuss its robustness to potential threats to identification. Second, the authors provide suggestive evidence that a form of asymmetric cost efficiencies in television advertising benefited the entrants more than the incumbents. Specifically, the unit costs of local advertising tend to be higher than of national advertising, which likely allowed the satellite operators to better leverage their national presence with (cheaper) national advertising. Overall, this study highlights the interaction between advertising efficiencies and the scale of entry in explaining the competition between market incumbents and entrants.

scholarly journals Measuring Historical Urban Neighborhood Sustainability: America’s Grand Avenues

2021 ◽  
Vol 13 (3) ◽  
pp. 1358
Author(s):  
Michael R. Greenberg
Keyword(s):  
New York ◽  
New York City ◽  
Kansas City ◽  
White Supremacy ◽  
Urban Neighborhood ◽  
Industrial Cities ◽  
The Us ◽  
Education Medical ◽  
Using Data ◽  
Us Cities

From 1850 through approximately 1920, wealthy entrepreneurs and elected officials created “grand avenues” lined by mansions in New York City, Chicago, Detroit, and other developing US cities. This paper examines the birthplaces of grand avenues to determine whether they have remained sustainable as magnets for healthy and wealthy people. Using data from the US EPA’s EJSCREEN system and the CDC’s 500 cities study across 11 cities, the research finds that almost every place where a grand avenue began has healthier and wealthier people than their host cities. Ward Parkway in Kansas City and New York’s Fifth Avenue have continued to be grand. Massachusetts Avenue in Washington, D.C., Richmond’s Monument Avenue, St. Charles Avenue in New Orleans, and Los Angeles’s Wilshire Boulevard are national and regional symbols of political power, culture and entertainment, leading to sustainable urban grand avenues, albeit several are challenged by their identification with white supremacy. Among Midwest industrial cities, Chicago’s Prairie Avenue birthplace has been the most successful, whereas the grand avenues of St. Louis, Cleveland, Detroit, and Buffalo have struggled, trying to use higher education, medical care, and entertainment to try to rebirth their once pre-eminent roles in their cities.

Absence of the weekend effect and industry-style portfolios

2019 ◽  
Vol 12 (4) ◽  
pp. 463-475
Author(s):  
Selma Izadi ◽  
Abdullah Noman
Keyword(s):  
New York ◽  
Stock Market ◽  
Structural Breaks ◽  
Stock Exchange ◽  
Structural Break ◽  
Weekend Effect ◽  
Content Type ◽  
Market Portfolio ◽  
The Us ◽  
Using Data

Purpose The existence of the weekend effect has been reported from the 1950s to 1970s in the US stock markets. Recently, Robins and Smith (2016, Critical Finance Review, 5: 417-424) have argued that the weekend effect has disappeared after 1975. Using data on the market portfolio, they document existence of structural break before 1975 and absence of any weekend effects after that date. The purpose of this study is to contribute some new empirical evidences on the weekend effect for the industry-style portfolios in the US stock market using data over 90 years. Design/methodology/approach The authors re-examine persistence or reversal of the weekend effect in the industry portfolios consisting of The New York Stock Exchange (NYSE), The American Stock Exchange (AMEX) and The National Association of Securities Dealers Automated Quotations exchange (NASDAQ) stocks using daily returns from 1926 to 2017. Our results confirm varying dates for structural breaks across industrial portfolios. Findings As for the existence of weekend effects, the authors get mixed results for different portfolios. However, the overall findings provide broad support for the absence of weekend effects in most of the industrial portfolios as reported in Robins and Smith (2016). In addition, structural breaks for other weekdays and days of the week effects for other days have also been documented in the paper. Originality/value As far as the authors are aware, this paper is the first research that analyzes weekend effect for the industry-style portfolios in the US stock market using data over 90 years.

The Restructuring of the Automobile Industry in the USA

1992 ◽  
Vol 24 (6) ◽  
pp. 833-852 ◽  
Author(s):  
R D Bingham ◽  
K K Sunmonu
Keyword(s):  
Automobile Industry ◽  
The Other ◽  
Cycle Phase ◽  
Economic Downturn ◽  
Mature Phase ◽  
The Us ◽  
Two Systems ◽  
Spatial Configurations ◽  
The Usa

In this paper, the changes in the US automobile industry which have occurred over the 1979–86 economic downturn and recovery are examined within the framework of Markusen's profit-cycle theory. When viewing the automobile indusltry as a whole, some of the findings support the profit-cycle theory and others do not. The theory is supported, however, within the context of two distinct automobile industries in the USA—one ‘Fordist’ and the other a Japanese ‘post-Fordist’ system. The Fordist system is entering the negative profit-cycle phase and the post-Fordist system is in the mature phase. The two systems have very different spatial configurations and are likely to have very different economic futures.

Predicting the longitudinal modulus of elasticity of Sitka spruce from cellulose orientation and abundance

Holzforschung ◽  
2010 ◽  
Vol 64 (4) ◽  
Author(s):  
J. Paul McLean ◽  
Robert Evans ◽  
John R. Moore
Keyword(s):  
Bulk Density ◽  
Modulus Of Elasticity ◽  
Microfibril Angle ◽  
Sitka Spruce ◽  
Picea Sitchensis ◽  
Model Parameters ◽  
Bending Tests ◽  
Wood Stiffness ◽  
Using Data ◽  
Longitudinal Modulus

Abstract Sitka spruce (Picea sitchensis) is the most widely planted commercial tree species in the United Kingdom and Ireland. Because of the increasing use of this species for construction, the ability to predict wood stiffness is becoming more important. In this paper, a number of models are developed using data on cellulose abundance and orientation obtained from the SilviScan-3 system to predict the longitudinal modulus of elasticity (MOE) of small defect-free specimens. Longitudinal MOE was obtained from both bending tests and a sonic resonance technique. Overall, stronger relationships were found between the various measures of cellulose abundance and orientation and the dynamic MOE obtained from the sonic resonance measurements, rather than with the static MOE obtained from bending tests. There was only a moderate relationship between wood bulk density and dynamic MOE (R2=0.423), but this relationship was improved when density was divided by microfibril angle (R2=0.760). The best model for predicting both static and dynamic MOE involved the product of bulk density and the coefficient of variation in the azimuthal intensity profile (R2=0.725 and 0.862, respectively). The model parameters obtained for Sitka spruce differed from those obtained in earlier studies on Pinus radiata and Eucalyptus delegatensis, indicating that the model might require recalibration before it can be applied to different species.

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