While it is commonly accepted that risk preferences differ across individuals, studies that estimate them typically allow for limited heterogeneity. We develop a methodology that allows for richer representation of heterogeneity both within and across utility types characterized by different behavioral features. This enables us to improve individual- and population-level estimates, and to assess the relative importance of loss aversion and probability weighting, and their prevalence in the population. Applying our model to individual sports-betting choices, we find that utility curvature alone does not explain observed choices and, while two-thirds of individuals exhibit loss aversion, all exhibit probability weighting.
{"title":"Modeling Preference Heterogeneity Within and Across Behavioral Types: Evidence from a Real-world Betting Market","authors":"Angie Andrikogiannopoulou, Filippos Papakonstantinou","doi":"10.2139/ssrn.2239194","DOIUrl":"https://doi.org/10.2139/ssrn.2239194","url":null,"abstract":"While it is commonly accepted that risk preferences differ across individuals, studies that estimate them typically allow for limited heterogeneity. We develop a methodology that allows for richer representation of heterogeneity both within and across utility types characterized by different behavioral features. This enables us to improve individual- and population-level estimates, and to assess the relative importance of loss aversion and probability weighting, and their prevalence in the population. Applying our model to individual sports-betting choices, we find that utility curvature alone does not explain observed choices and, while two-thirds of individuals exhibit loss aversion, all exhibit probability weighting.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76109803","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Twenty years ago, there were all but a handful of scholarly studies published about the economics of the motion picture industry. Over the first decade of the new millennium, this changed dramatically and many studies began to appear in economics journals and those of cognate disciplines. The following, and most recent, decade has seen this trend continue and the literature on the `economics of movies' has well and truly matured. While economics and marketing disciplines still generate the most output, newer data-orientated disciplines have increasingly turned their attention towards the industry and its abundance of rich and relatively-accessible data. This survey endeavours to concisely but comprehensively review recent literature related to this eternally fascinating industry.
{"title":"The economics of movies (revisited): A decade of literature in review","authors":"J. McKenzie","doi":"10.2139/ssrn.3924209","DOIUrl":"https://doi.org/10.2139/ssrn.3924209","url":null,"abstract":"Twenty years ago, there were all but a handful of scholarly studies published about the economics of the motion picture industry. Over the first decade of the new millennium, this changed dramatically and many studies began to appear in economics journals and those of cognate disciplines. The following, and most recent, decade has seen this trend continue and the literature on the `economics of movies' has well and truly matured. While economics and marketing disciplines still generate the most output, newer data-orientated disciplines have increasingly turned their attention towards the industry and its abundance of rich and relatively-accessible data. This survey endeavours to concisely but comprehensively review recent literature related to this eternally fascinating industry.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91196476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Duane B. Kennedy, Byron Y. Song, Theophanis C. Stratopoulos
Studies which examine the effect of IT on firm performance make the implicit assumption that the choice of industry classification (e.g., SIC instead of NAICS) and the level of aggregation (e.g., 2-digit SIC instead of 4-digit SIC) is unlikely to affect the results. Given that practically none of the studies in our literature review has tested the robustness of their results to an alternative industry classification method, we do not know whether this choice matters (i.e., we don’t know whether the evidence generated from this stream of research is robust). To answer this question, we replicated three studies (Bharadwaj 2000; Chae et al. 2014; Santhanam and Hartono 2003) and found that results are likely to differ if we change the classification method and/or the level of aggregation within a given industry classification method. We encourage IT researchers to replicate prior studies to assess the sensitivity of their results to such choices as well as encouraging future studies to consider implementing robustness checks. The need to consider such robustness checks spans all fields (e.g., accounting, strategic management, and marketing) that use statistical analysis which requires control for role of industry.
检验信息技术对企业绩效影响的研究隐含了一个假设，即行业分类的选择(例如，使用SIC而不是NAICS)和聚合水平(例如，使用2位数的SIC而不是4位数的SIC)不太可能影响结果。鉴于我们的文献综述中几乎没有一项研究对另一种行业分类方法的结果进行了稳健性测试，我们不知道这种选择是否重要(即，我们不知道从这一研究流中产生的证据是否可靠)。为了回答这个问题，我们重复了三项研究(Bharadwaj 2000;Chae et al. 2014;Santhanam and Hartono 2003)，并发现如果我们改变分类方法和/或给定行业分类方法内的聚合水平，结果可能会有所不同。我们鼓励IT研究人员重复先前的研究，以评估其结果对这些选择的敏感性，并鼓励未来的研究考虑实施稳健性检查。考虑这种稳健性检查的需要跨越所有使用统计分析的领域(例如，会计，战略管理和市场营销)，这需要对行业角色进行控制。
{"title":"Does Industry Classification Matter in IT Business Value Research?","authors":"Duane B. Kennedy, Byron Y. Song, Theophanis C. Stratopoulos","doi":"10.2139/ssrn.3919658","DOIUrl":"https://doi.org/10.2139/ssrn.3919658","url":null,"abstract":"Studies which examine the effect of IT on firm performance make the implicit assumption that the choice of industry classification (e.g., SIC instead of NAICS) and the level of aggregation (e.g., 2-digit SIC instead of 4-digit SIC) is unlikely to affect the results. Given that practically none of the studies in our literature review has tested the robustness of their results to an alternative industry classification method, we do not know whether this choice matters (i.e., we don’t know whether the evidence generated from this stream of research is robust). To answer this question, we replicated three studies (Bharadwaj 2000; Chae et al. 2014; Santhanam and Hartono 2003) and found that results are likely to differ if we change the classification method and/or the level of aggregation within a given industry classification method. We encourage IT researchers to replicate prior studies to assess the sensitivity of their results to such choices as well as encouraging future studies to consider implementing robustness checks. The need to consider such robustness checks spans all fields (e.g., accounting, strategic management, and marketing) that use statistical analysis which requires control for role of industry.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87974503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper proposes a new method for estimating random coefficients logit models using aggregate data. The method is applicable for models with discrete-type heterogeneity in consumer tastes when additional data on the total sales for each consumer type are available. The type-level data do not have to be divided by product. The method analytically obtains the value of the econometric error term and thus does not require numerical calculations, such as the contraction mapping established by Berry, Levinsohn, and Pakes (1995). Consequently, the method no longer suffers from problems due to numerical errors in the contraction mapping, including lack of convergence and incorrect parameter estimates. Moreover, the computation time is drastically reduced.
本文提出了一种利用聚合数据估计随机系数logit模型的新方法。当每种消费者类型的总销售额的附加数据可用时，该方法适用于具有离散型消费者口味异质性的模型。类型级数据不必除以乘积。该方法可以解析地获得计量误差项的值，因此不需要数值计算，例如Berry, Levinsohn, and Pakes(1995)建立的收缩映射。因此，该方法不再遭受由于收缩映射中的数值误差造成的问题，包括缺乏收敛性和不正确的参数估计。而且，大大减少了计算时间。
{"title":"A Simple Method to Estimate Discrete-type Random Coefficients Logit Models","authors":"Naoshi Doi","doi":"10.2139/ssrn.3729184","DOIUrl":"https://doi.org/10.2139/ssrn.3729184","url":null,"abstract":"This paper proposes a new method for estimating random coefficients logit models using aggregate data. The method is applicable for models with discrete-type heterogeneity in consumer tastes when additional data on the total sales for each consumer type are available. The type-level data do not have to be divided by product. The method analytically obtains the value of the econometric error term and thus does not require numerical calculations, such as the contraction mapping established by Berry, Levinsohn, and Pakes (1995). Consequently, the method no longer suffers from problems due to numerical errors in the contraction mapping, including lack of convergence and incorrect parameter estimates. Moreover, the computation time is drastically reduced.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79368563","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The cost and revenue earnings potential of alternative power generation sources has shifted considerably in recent years. Here we introduce the concept of Levelized Profit Margins (LPM) to capture the changing unit economics of both intermittent and dispatchable generation technologies. We apply this framework in the context of the California and Texas wholesale power markets. Our LPM estimates indicate that solar photovoltaic and wind power have both substantially improved their competitive position over the years 2012–2019, primarily due to falling life-cycle costs of production. In California, these gains far outweigh an emerging “cannibalization” trend that results from substantial additions of solar power having made energy less valuable in the middle of the day. We also find the competitiveness of natural gas power plants to have either improved or held steady. For this generation technology, declining capacity utilization rates have effectively been counterbalanced by a “dispatchability price premium” that reflects the growing market share of intermittent renewables.
{"title":"Intermittent versus Dispatchable Power Sources: An Integrated Competitive Assessment","authors":"Gunther Glenk, S. Reichelstein","doi":"10.2139/ssrn.3897672","DOIUrl":"https://doi.org/10.2139/ssrn.3897672","url":null,"abstract":"The cost and revenue earnings potential of alternative power generation sources has shifted considerably in recent years. Here we introduce the concept of Levelized Profit Margins (LPM) to capture the changing unit economics of both intermittent and dispatchable generation technologies. We apply this framework in the context of the California and Texas wholesale power markets. Our LPM estimates indicate that solar photovoltaic and wind power have both substantially improved their competitive position over the years 2012–2019, primarily due to falling life-cycle costs of production. In California, these gains far outweigh an emerging “cannibalization” trend that results from substantial additions of solar power having made energy less valuable in the middle of the day. We also find the competitiveness of natural gas power plants to have either improved or held steady. For this generation technology, declining capacity utilization rates have effectively been counterbalanced by a “dispatchability price premium” that reflects the growing market share of intermittent renewables.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75117761","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The retail industry has had a topsy-turvy journey in the past decade. Shoppers have developed a fondness for online shopping and two-day shipping, and this has caused a serious downfall to many retail stores already. Add to that, the global pandemic that encapsulated the entire world for a little over a year, and many retail businesses, that were already in trouble, were never able to recover from the devastation.
{"title":"Retail Marketing Industry Comeback Post Pandemic","authors":"Stephanie Austin-Campbell","doi":"10.2139/ssrn.3895331","DOIUrl":"https://doi.org/10.2139/ssrn.3895331","url":null,"abstract":"The retail industry has had a topsy-turvy journey in the past decade. Shoppers have developed a fondness for online shopping and two-day shipping, and this has caused a serious downfall to many retail stores already. Add to that, the global pandemic that encapsulated the entire world for a little over a year, and many retail businesses, that were already in trouble, were never able to recover from the devastation.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77015671","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article supplements information on 24 U.S. domestic buyers’ cartels cited in a 2010 book by Blair and Harrison by assembling and analyzing a sample of 49 episodes of buyers’ cartels that have international membership or multi-jurisdictional price effects. It appears that such cartels comprise less than 8 percent of the total, that they are clustered in primary-products and services industries, that they employ bid rigging conduct to a greater extent than sellers’ cartels, and that undercharges average close to 20 percent of the but-for price. These quantitative characteristics are supplemented by sketches of the conduct and prosecutions of a few of the better-documented cases of buyers’ cartels.
{"title":"Buyers’ Cartels: Prevalence and Undercharges","authors":"J. Connor","doi":"10.2139/ssrn.3883691","DOIUrl":"https://doi.org/10.2139/ssrn.3883691","url":null,"abstract":"This article supplements information on 24 U.S. domestic buyers’ cartels cited in a 2010 book by Blair and Harrison by assembling and analyzing a sample of 49 episodes of buyers’ cartels that have international membership or multi-jurisdictional price effects. It appears that such cartels comprise less than 8 percent of the total, that they are clustered in primary-products and services industries, that they employ bid rigging conduct to a greater extent than sellers’ cartels, and that undercharges average close to 20 percent of the but-for price. These quantitative characteristics are supplemented by sketches of the conduct and prosecutions of a few of the better-documented cases of buyers’ cartels.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72683949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines whether competitive banking markets affect the likelihood that firms file for bankruptcy. We compile large and unique databases of U.S. public and private corporate bankruptcies and find that bank competition significantly reduces firms' filing rates. Chapter 11 and 7 filings both decrease. The results are not concentrated among any specific bankruptcy outcome and are unlikely to be driven by forum shopping. The effects are geographically widespread and driven by distressed firms' improved access to credit. The effects become stronger during economic downturns and in states that host firms with ex-ante higher probabilities of distress.
{"title":"Weathering Distress: Corporate Bankruptcy and Bank Competition","authors":"Jess Cornaggia, Mahsa S. Kaviani, H. Maleki","doi":"10.2139/ssrn.3002938","DOIUrl":"https://doi.org/10.2139/ssrn.3002938","url":null,"abstract":"This paper examines whether competitive banking markets affect the likelihood that firms file for bankruptcy. We compile large and unique databases of U.S. public and private corporate bankruptcies and find that bank competition significantly reduces firms' filing rates. Chapter 11 and 7 filings both decrease. The results are not concentrated among any specific bankruptcy outcome and are unlikely to be driven by forum shopping. The effects are geographically widespread and driven by distressed firms' improved access to credit. The effects become stronger during economic downturns and in states that host firms with ex-ante higher probabilities of distress.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85980962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Outsourcing to Contract Research Organizations (CROs) has become a widespread practice by pharmaceutical and biotechnological firms seeking to reduce risks and costs associated to the development of new products. This paper analyzes empirically the efficiency of the CROs industry by looking at a sample of firms operating in Europe over the years 2010-2019.
We compute efficiency scores of the firms in the sample by means of DEA non- parametric techniques. Basic results suggest that the sector achieves large levels of average efficiency, amounting to 0.716. Average efficiency increases over time in the time horizon considered. A second stage Tobit estimation implies that big firms exhibit higher levels of efficiency than medium size and small firms because large sizes facilitate the use of state-of-the-art technology for data collection and analysis and the accession to stable commercial alliances. Efficiency is also positively correlated with sound human resource and financial managements, and with a moderate size of the fixed assets held by the firm. These results suggest that more merges and acquisitions are expected in this sector in the near future.
{"title":"Efficiency in the CRO industry, 2010-2019","authors":"Ricardo F Diaz, B. Sanchez-Robles","doi":"10.2139/ssrn.3839735","DOIUrl":"https://doi.org/10.2139/ssrn.3839735","url":null,"abstract":"Outsourcing to Contract Research Organizations (CROs) has become a widespread practice by pharmaceutical and biotechnological firms seeking to reduce risks and costs associated to the development of new products. This paper analyzes empirically the efficiency of the CROs industry by looking at a sample of firms operating in Europe over the years 2010-2019. <br><br>We compute efficiency scores of the firms in the sample by means of DEA non- parametric techniques. Basic results suggest that the sector achieves large levels of average efficiency, amounting to 0.716. Average efficiency increases over time in the time horizon considered. A second stage Tobit estimation implies that big firms exhibit higher levels of efficiency than medium size and small firms because large sizes facilitate the use of state-of-the-art technology for data collection and analysis and the accession to stable commercial alliances. Efficiency is also positively correlated with sound human resource and financial managements, and with a moderate size of the fixed assets held by the firm. These results suggest that more merges and acquisitions are expected in this sector in the near future.<br>","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86943728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper empirically examines the impact of Uber, an online ridesharing platform, on automobile registrations, a sales performance indicator in the traditional, mature automobile industry in the United States. We leverage the sequential entry of Uber in different locations in a natural experiment setting and use the staggered difference-in-differences (DID) econometric model to estimate this impact. Our dataset includes yearly observations of Uber’s entry and automobile registration that span more than 600 counties from 2010 to 2017. The results suggest that Uber’s entry has an overall negative effect on automobile registrations, and this effect sustains for another year after entry. The negative effect manifests significantly for counties with larger values of GDP, population, and population density but can become insignificant for counties with smaller values. Our results are robust to matching, placebo tests, and the consideration of Uber’s endogenous entry decision, and are reinforced by the analysis of Uber’s search intensity on Google. Our findings have important managerial and policy implications and contribute to the growing stream of research on the social and economic impacts of sharing economy.
{"title":"Book-or-Drive: The Impact of Ridesharing on the Automobile Industry","authors":"Ayush Sengupta, Shu He, Xinxin Li","doi":"10.2139/ssrn.3810178","DOIUrl":"https://doi.org/10.2139/ssrn.3810178","url":null,"abstract":"This paper empirically examines the impact of Uber, an online ridesharing platform, on automobile registrations, a sales performance indicator in the traditional, mature automobile industry in the United States. We leverage the sequential entry of Uber in different locations in a natural experiment setting and use the staggered difference-in-differences (DID) econometric model to estimate this impact. Our dataset includes yearly observations of Uber’s entry and automobile registration that span more than 600 counties from 2010 to 2017. The results suggest that Uber’s entry has an overall negative effect on automobile registrations, and this effect sustains for another year after entry. The negative effect manifests significantly for counties with larger values of GDP, population, and population density but can become insignificant for counties with smaller values. Our results are robust to matching, placebo tests, and the consideration of Uber’s endogenous entry decision, and are reinforced by the analysis of Uber’s search intensity on Google. Our findings have important managerial and policy implications and contribute to the growing stream of research on the social and economic impacts of sharing economy.","PeriodicalId":11837,"journal":{"name":"ERN: Other IO: Empirical Studies of Firms & Markets (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81576577","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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