We study the impacts of social interactions on competing firms’ quality differentiation, pricing decisions, and profit performance. Two forms of social interactions are identified and analyzed: (1) market-expansion effect (MEE)—the total market expands as a result of both firms’ sales—and (2) value-enhancement effect (VEE)—a consumer gains additional utility of purchasing from one firm based on this firm’s previous and/or current sales volume. We consider a two-stage duopoly competition framework, in which both firms select quality levels in the first stage simultaneously and engage in a two-period price competition in the second stage. In the main model, we assume that each firm sets a single price and commits to it across two selling periods. We find that both forms of social interactions tend to lower prices and intensify price competition for given quality levels. However, MEE weakens the product-quality differentiation and is benign to both high-quality and low-quality firms. It also benefits consumers and improves social welfare. By contrast, VEE enlarges the quality differentiation and only benefits the high-quality firm, but is particularly malignant to the low-quality firm. It further reduces the consumers’ monetary surplus. Such impact is consistent, regardless of whether the VEE interactions involve previous or current consumers. We further discuss several model extensions, including dynamic pricing, combined social effects, and various cost structures, and verify that the aforementioned impacts of MEE and VEE are qualitatively robust to those extensions. Our results provide important managerial insights for firms in competitive markets and suggest that they need to not only be aware of the consumers’ social interactions, but also, more importantly, distinguish the predominant form of the interactions so as to apply proper marketing strategies. This paper was accepted by Matthew Shum, marketing.
{"title":"Impact of Social Interactions on Duopoly Competition with Quality Considerations","authors":"Xin Geng, Xiaomeng Guo, Guang Xiao","doi":"10.1287/MNSC.2021.3972","DOIUrl":"https://doi.org/10.1287/MNSC.2021.3972","url":null,"abstract":"We study the impacts of social interactions on competing firms’ quality differentiation, pricing decisions, and profit performance. Two forms of social interactions are identified and analyzed: (1) market-expansion effect (MEE)—the total market expands as a result of both firms’ sales—and (2) value-enhancement effect (VEE)—a consumer gains additional utility of purchasing from one firm based on this firm’s previous and/or current sales volume. We consider a two-stage duopoly competition framework, in which both firms select quality levels in the first stage simultaneously and engage in a two-period price competition in the second stage. In the main model, we assume that each firm sets a single price and commits to it across two selling periods. We find that both forms of social interactions tend to lower prices and intensify price competition for given quality levels. However, MEE weakens the product-quality differentiation and is benign to both high-quality and low-quality firms. It also benefits consumers and improves social welfare. By contrast, VEE enlarges the quality differentiation and only benefits the high-quality firm, but is particularly malignant to the low-quality firm. It further reduces the consumers’ monetary surplus. Such impact is consistent, regardless of whether the VEE interactions involve previous or current consumers. We further discuss several model extensions, including dynamic pricing, combined social effects, and various cost structures, and verify that the aforementioned impacts of MEE and VEE are qualitatively robust to those extensions. Our results provide important managerial insights for firms in competitive markets and suggest that they need to not only be aware of the consumers’ social interactions, but also, more importantly, distinguish the predominant form of the interactions so as to apply proper marketing strategies. This paper was accepted by Matthew Shum, marketing.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124043474","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 investigates the impact of volatility in profitability shock and capital adjustment cost on aggregate total factor productivity (TFP) in Chinese industries firms. To quantify the effects of volatility and adjustment costs on aggregate TFP, we recover key structural parameters in a dynamic optimization problem, so the model is able to replicate salient features observed from the firm-level data. Our result shows that volatility leads to considerable loss in aggregate TFP, while the role of adjustment cost is limited but significant.
{"title":"Volatility, Adjustment Cost and Capital Misallocation: Evidence from Chinese Industrial Firms","authors":"Sarah Tang, Jun Zhang, J. Shen","doi":"10.2139/ssrn.3739974","DOIUrl":"https://doi.org/10.2139/ssrn.3739974","url":null,"abstract":"This paper investigates the impact of volatility in profitability shock and capital adjustment cost on aggregate total factor productivity (TFP) in Chinese industries firms. To quantify the effects of volatility and adjustment costs on aggregate TFP, we recover key structural parameters in a dynamic optimization problem, so the model is able to replicate salient features observed from the firm-level data. Our result shows that volatility leads to considerable loss in aggregate TFP, while the role of adjustment cost is limited but significant.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"772 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133613247","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}
Yangfan Liang, Gordon Burtch, D. Cho, Michael D. Smith
Movie studios’ film distribution practices have undergone radical changes over the past decade with the rise of digital channels including Electronic-Sell-Through (EST) and Video-on-demand (VOD). However, one aspect of the release schedule has been remarkably stable. Most Hollywood movies are still released in theaters 1-3 months before they are made available on digital channels for in-home consumption. Given the rising importance of digital in-home channels, our research analyzes whether earlier digital in-home releases impact theatrical revenue, home entertainment revenue, and the overall revenue received by studios. We address these questions using data from South Korea where, for a number of years, studios have pursued early digital release of many movies via an offering known as Super Premium (SP) Video on Demand (VOD). SPVOD was introduced in South Korea in 2012 and had been adopted by every major movie studio in Korea by the end of 2018. Traditional (non-SP) digital releases typically occur 90 days after the initial theatrical release, well after the movie has stopped showing in theaters. By contrast, SP releases typically occur just four to five weeks after a theatrical premiere, while the movie is typically still being shown in theaters. We exploit cross-country differences in movies’ theatrical revenue over the duration of the box office window to investigate the extent to which an early digital release impacts box office revenue. In particular, we employ a difference-in-differences-in-differences (DDD) strategy, contrasting SP versus non-SP movie revenues over time, before versus after the Korean SP release, and in Korea versus the United States (where SP notably does not exist). This identification strategy enables us to empirically isolate the causal effect of the SP release, over and above any confounded, systematic differences in the box office performance of SP-assigned and non-SP-assigned movies. With respect to theatrical revenue, we find that shortening the digital release window from 3 months to 3-5 weeks after the theatrical release causes a statistically and economically insignificant decline in theatrical revenue, equivalent to an approximate 0.8% drop in total theatrical revenue in Korea during the first eight weeks of the theatrical run. With respect to home entertainment revenue, using digital movie sales data in Korea and industry estimates of studio margins on theatrical and SPVOD revenue, we estimate that SPVOD releases increase the marginal revenue received by studios in the first eight weeks of a movie’s Korean release by approximately 12%. Finally, we find that while the data from torrent piracy suggest that early SPVOD releases lead to earlier global availability of high-quality piracy sources, we see no evidence that these early sources increase piracy demand for movies released in SPVOD windows in either the Korean or US markets.
{"title":"The Impact of Early Digital Movie Releases on Box Office Revenue: Evidence from the Korean Market","authors":"Yangfan Liang, Gordon Burtch, D. Cho, Michael D. Smith","doi":"10.2139/ssrn.3749476","DOIUrl":"https://doi.org/10.2139/ssrn.3749476","url":null,"abstract":"Movie studios’ film distribution practices have undergone radical changes over the past decade with the rise of digital channels including Electronic-Sell-Through (EST) and Video-on-demand (VOD). However, one aspect of the release schedule has been remarkably stable. Most Hollywood movies are still released in theaters 1-3 months before they are made available on digital channels for in-home consumption. Given the rising importance of digital in-home channels, our research analyzes whether earlier digital in-home releases impact theatrical revenue, home entertainment revenue, and the overall revenue received by studios. \u0000 \u0000We address these questions using data from South Korea where, for a number of years, studios have pursued early digital release of many movies via an offering known as Super Premium (SP) Video on Demand (VOD). SPVOD was introduced in South Korea in 2012 and had been adopted by every major movie studio in Korea by the end of 2018. Traditional (non-SP) digital releases typically occur 90 days after the initial theatrical release, well after the movie has stopped showing in theaters. By contrast, SP releases typically occur just four to five weeks after a theatrical premiere, while the movie is typically still being shown in theaters. \u0000 \u0000We exploit cross-country differences in movies’ theatrical revenue over the duration of the box office window to investigate the extent to which an early digital release impacts box office revenue. In particular, we employ a difference-in-differences-in-differences (DDD) strategy, contrasting SP versus non-SP movie revenues over time, before versus after the Korean SP release, and in Korea versus the United States (where SP notably does not exist). This identification strategy enables us to empirically isolate the causal effect of the SP release, over and above any confounded, systematic differences in the box office performance of SP-assigned and non-SP-assigned movies. \u0000 \u0000With respect to theatrical revenue, we find that shortening the digital release window from 3 months to 3-5 weeks after the theatrical release causes a statistically and economically insignificant decline in theatrical revenue, equivalent to an approximate 0.8% drop in total theatrical revenue in Korea during the first eight weeks of the theatrical run. With respect to home entertainment revenue, using digital movie sales data in Korea and industry estimates of studio margins on theatrical and SPVOD revenue, we estimate that SPVOD releases increase the marginal revenue received by studios in the first eight weeks of a movie’s Korean release by approximately 12%. Finally, we find that while the data from torrent piracy suggest that early SPVOD releases lead to earlier global availability of high-quality piracy sources, we see no evidence that these early sources increase piracy demand for movies released in SPVOD windows in either the Korean or US markets.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127184402","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 how outside and inside competition affect the number and composition of product offerings. The question is addressed using the example of the U.S. motion picture industry, which has experienced declining attendance in the past decade due to outside competition from streaming services and smart phone applications. Using data on 1,486 releases between 2009 and 2018, we estimate a structural model of endogenous product choice in which studios allocate a fixed budget to low-, medium-, and high-budget movie projects each year. Counterfactual estimates using our parameter estimates indicate that an increase in the value of the outside option leads to a significant reduction in the number of medium-budget movies but little change in the number of low- and high-budget movies. Additional counterfactual exercises that simulate a change to the level of competition inside the market, such as a merger between two studios or the entry of a new studio, confirm the existence of an inverse relationship between competition and the number of medium-budget movies.
{"title":"Market Size and Product Composition: Evidence from Hollywood","authors":"Joseph Kuehn, Ryan Lampe","doi":"10.2139/ssrn.3751648","DOIUrl":"https://doi.org/10.2139/ssrn.3751648","url":null,"abstract":"This paper examines how outside and inside competition affect the number and composition of product offerings. The question is addressed using the example of the U.S. motion picture industry, which has experienced declining attendance in the past decade due to outside competition from streaming services and smart phone applications. Using data on 1,486 releases between 2009 and 2018, we estimate a structural model of endogenous product choice in which studios allocate a fixed budget to low-, medium-, and high-budget movie projects each year. Counterfactual estimates using our parameter estimates indicate that an increase in the value of the outside option leads to a significant reduction in the number of medium-budget movies but little change in the number of low- and high-budget movies. Additional counterfactual exercises that simulate a change to the level of competition inside the market, such as a merger between two studios or the entry of a new studio, confirm the existence of an inverse relationship between competition and the number of medium-budget movies.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125498436","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}
We examine how CEO overconfidence impacts profitability and stock return for firms at different stages in their life cycle. Extant research has shown that an overconfident personality could affect the CEO's decision-making on investment, financial reporting, and the firm's choice of policies. It is well known that firms have lifecycle stages as they evolve with time. The firm's evolution is triggered by changes in internal factors like an investment and managerial decisions and external factors such as the evolution of industry and economy. Prior literature posits that life cycle stages have an impact on firms' decision making and profitability. We find that firms with overconfident CEOs perform differently and have abnormal returns depending on the firm's life cycle. Especially they perform better and have positive abnormal returns in growth, mature and shake-out stages if the CEOs are overconfident. We find no significant result for firms in the introduction and decline phases.
{"title":"The Impact of CEO Overconfidence on Profitability and Stock Return: A Firm’s Life Cycle Perspective","authors":"Sebahattin Demirkan, B. K. Mishra, Tuba Toksoz","doi":"10.2139/ssrn.3741785","DOIUrl":"https://doi.org/10.2139/ssrn.3741785","url":null,"abstract":"We examine how CEO overconfidence impacts profitability and stock return for firms at different stages in their life cycle. Extant research has shown that an overconfident personality could affect the CEO's decision-making on investment, financial reporting, and the firm's choice of policies. It is well known that firms have lifecycle stages as they evolve with time. The firm's evolution is triggered by changes in internal factors like an investment and managerial decisions and external factors such as the evolution of industry and economy. Prior literature posits that life cycle stages have an impact on firms' decision making and profitability. We find that firms with overconfident CEOs perform differently and have abnormal returns depending on the firm's life cycle. Especially they perform better and have positive abnormal returns in growth, mature and shake-out stages if the CEOs are overconfident. We find no significant result for firms in the introduction and decline phases.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"88 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127199948","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}
What assets does a firm need to hold to develop a profitable business model? A ‘Hart asset’ is an asset that a firm cannot strategically afford a rival firm to own or control due to the risk of hold up, and therefore must be held within the firm, and upon which a profitable business model can be built. We tie the Hart asset to the problem of complementarities in profitable innovation, and conclude with an example Hart asset in digital platforms.
{"title":"The Hart Asset at the Heart of Your Organisation","authors":"S. Davidson, C. Berg, J. Potts","doi":"10.2139/ssrn.3738418","DOIUrl":"https://doi.org/10.2139/ssrn.3738418","url":null,"abstract":"What assets does a firm need to hold to develop a profitable business model? A ‘Hart asset’ is an asset that a firm cannot strategically afford a rival firm to own or control due to the risk of hold up, and therefore must be held within the firm, and upon which a profitable business model can be built. We tie the Hart asset to the problem of complementarities in profitable innovation, and conclude with an example Hart asset in digital platforms.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127270384","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}
In this note we provide a method for converting sales rank data into sales quantity. We show how sales quantity data can be extracted from product inventories on Amazon for a subset of products. We collect a large dataset using this method and then generalize results from Chevalier & Goolsbee (2003) by estimating the fit of a Pareto distribution model of sales rank for a large number of categories. We provide the outputs necessary to convert rank to quantity for these categories as well as a method for conducting inference on quantities.
{"title":"Sales and Rank on Amazon.com","authors":"Sherry He, Brett Hollenbeck","doi":"10.2139/ssrn.3728281","DOIUrl":"https://doi.org/10.2139/ssrn.3728281","url":null,"abstract":"In this note we provide a method for converting sales rank data into sales quantity. We show how sales quantity data can be extracted from product inventories on Amazon for a subset of products. We collect a large dataset using this method and then generalize results from Chevalier & Goolsbee (2003) by estimating the fit of a Pareto distribution model of sales rank for a large number of categories. We provide the outputs necessary to convert rank to quantity for these categories as well as a method for conducting inference on quantities.<br>","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114536910","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}
Allocating Resources Across Systems Coupled by Shared Information Many sequential decision problems involve repeatedly allocating a limited resource across subsystems that are jointly affected by randomly evolving exogenous factors. For example, in adaptive clinical trials, a decision maker needs to allocate patients to treatments in an effort to learn about the efficacy of treatments, but the number of available patients may vary randomly over time. In capital budgeting problems, firms may allocate resources to conduct R&D on new products, but funding budgets may evolve randomly. In many inventory management problems, firms need to allocate limited production capacity to satisfy uncertain demands at multiple locations, and these demands may be correlated due to vagaries in shared market conditions. In this paper, we develop a model involving “shared resources and signals” that captures these and potentially many other applications. The framework is naturally described as a stochastic dynamic program, but this problem is quite difficult to solve. We develop an approximation method based on a “dynamic fluid relaxation”: in this approximation, the subsystem state evolution is approximated by a deterministic fluid model, but the exogenous states (the signals) retain their stochastic evolution. We develop an algorithm for solving the dynamic fluid relaxation. We analyze the corresponding feasible policies and performance bounds from the dynamic fluid relaxation and show that these are asymptotically optimal as the number of subsystems grows large. We show that competing state-of-the-art approaches used in the literature on weakly coupled dynamic programs in general fail to provide asymptotic optimality. Finally, we illustrate the approach on the aforementioned dynamic capital budgeting and multilocation inventory management problems.
{"title":"Dynamic Programs with Shared Resources and Signals: Dynamic Fluid Policies and Asymptotic Optimality","authors":"David B. Brown, Jingwei Zhang","doi":"10.2139/ssrn.3728111","DOIUrl":"https://doi.org/10.2139/ssrn.3728111","url":null,"abstract":"Allocating Resources Across Systems Coupled by Shared Information Many sequential decision problems involve repeatedly allocating a limited resource across subsystems that are jointly affected by randomly evolving exogenous factors. For example, in adaptive clinical trials, a decision maker needs to allocate patients to treatments in an effort to learn about the efficacy of treatments, but the number of available patients may vary randomly over time. In capital budgeting problems, firms may allocate resources to conduct R&D on new products, but funding budgets may evolve randomly. In many inventory management problems, firms need to allocate limited production capacity to satisfy uncertain demands at multiple locations, and these demands may be correlated due to vagaries in shared market conditions. In this paper, we develop a model involving “shared resources and signals” that captures these and potentially many other applications. The framework is naturally described as a stochastic dynamic program, but this problem is quite difficult to solve. We develop an approximation method based on a “dynamic fluid relaxation”: in this approximation, the subsystem state evolution is approximated by a deterministic fluid model, but the exogenous states (the signals) retain their stochastic evolution. We develop an algorithm for solving the dynamic fluid relaxation. We analyze the corresponding feasible policies and performance bounds from the dynamic fluid relaxation and show that these are asymptotically optimal as the number of subsystems grows large. We show that competing state-of-the-art approaches used in the literature on weakly coupled dynamic programs in general fail to provide asymptotic optimality. Finally, we illustrate the approach on the aforementioned dynamic capital budgeting and multilocation inventory management problems.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"139 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126491783","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}
Using an indicator measure based on war and terror acts that is plausibly uncorrelated with local economic conditions, we document that unanticipated increases in geopolitical uncertainty cause a reduction in R&D expenditure and patenting activity in firms in the U.S. In the cross section, the impact of geopolitical uncertainty on innovation is greater for firms in industries with high innovative competition and financial market frictions. Using industry level data, we show that geopolitical uncertainty lowers long-run economic growth through each of the mechanisms. We show that our results are unlikely to be driven by omitted variable bias or measurement error.
{"title":"Uncertainty Stifles Innovation and Growth: Evidence From Geopolitical Flare-Ups","authors":"Ruchith Dissanayake, Yanhui Wu","doi":"10.2139/ssrn.3722797","DOIUrl":"https://doi.org/10.2139/ssrn.3722797","url":null,"abstract":"Using an indicator measure based on war and terror acts that is plausibly uncorrelated with local economic conditions, we document that unanticipated increases in geopolitical uncertainty cause a reduction in R&D expenditure and patenting activity in firms in the U.S. In the cross section, the impact of geopolitical uncertainty on innovation is greater for firms in industries with high innovative competition and financial market frictions. Using industry level data, we show that geopolitical uncertainty lowers long-run economic growth through each of the mechanisms. We show that our results are unlikely to be driven by omitted variable bias or measurement error.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"36 Suppl 1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126165621","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 COVID-19 pandemic caused an unprecedented collapse of the U.S. economy in late March 2020. The federal government scrambled to provide emergency financial support through a variety of hastily-assembled programs, such as PPP, but relief did not always go to where it was most needed. This article shows how a business' failure risk in a pandemic depends on its native ability to adapt to changing consumer preferences in a pandemic. It demonstrates native adaptability in the context of one particularly hard-hit industry, the lodging industry, and argues that funds can be distributed more efficiently by taking native adaptability into account.
{"title":"COVID-19 ECONOMICS: Competitive Survival in a Devastated Industry: Evidence from Hotels during COVID-19","authors":"M. Noel","doi":"10.2139/ssrn.3660174","DOIUrl":"https://doi.org/10.2139/ssrn.3660174","url":null,"abstract":"The COVID-19 pandemic caused an unprecedented collapse of the U.S. economy in late March 2020. The federal government scrambled to provide emergency financial support through a variety of hastily-assembled programs, such as PPP, but relief did not always go to where it was most needed. This article shows how a business' failure risk in a pandemic depends on its native ability to adapt to changing consumer preferences in a pandemic. It demonstrates native adaptability in the context of one particularly hard-hit industry, the lodging industry, and argues that funds can be distributed more efficiently by taking native adaptability into account.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"06 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127193626","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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