Geroski, Paul A. and Mazzucato, M
PDF (Not Set)
- Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
|Google Scholar:||Look up in Google Scholar|
This paper focuses on a single simple stylized fact which stands out from the post-war history of the US car industry, namely that industry concentration fell just at the same time as industry advertising expenditures rose sharply. Since both events were almost certainly caused by the entry and market penetration of (largely) foreign owned car producers, this stylized fact raises interesting questions about whether – and if so, how – advertising affects entry. We use a model of consumer switching behaviour to help interpret the facts. The model predicts a simple linear association between market and advertising shares (which we observe fairly clearly at two different levels of aggregation in the data), and provides the basis for arguing that advertising can facilitate entry, but only for finite periods of time.
|Item Type:||Book Chapter|
|Academic Unit/Department:||Social Sciences > Economics
|Depositing User:||Christopher Biggs|
|Date Deposited:||27 Sep 2007|
|Last Modified:||25 Feb 2016 05:02|
|Share this page:|
Download history for this item
These details should be considered as only a guide to the number of downloads performed manually. Algorithmic methods have been applied in an attempt to remove automated downloads from the displayed statistics but no guarantee can be made as to the accuracy of the figures.