{"title":"Competitive Entry in the Market for Branded Generic Drugs","authors":"Vasudha Wattal","doi":"10.1111/jems.12632","DOIUrl":"https://doi.org/10.1111/jems.12632","url":null,"abstract":"<p>I analyze the determinants of lead time (the time lag between the first-mover's product release and the competitor's market entry) and its consequences for product prices, competition, and consumers. I investigate the case for the Indian branded generic pharmaceutical sector where substantial variation in lead time is observed. I show that overall entry is linked with product market profitability, but entry timing may be strategically related with both originator and competitor firm experience. This appears relevant for those products more likely to build up brand loyalty. I also show that lead time, once its potential endogeneity is accounted for, appears to increase the originator's post-entry market shares, but has no effect on prices. These findings indicate that market segmentation based on price sensitivity appears less likely in the presence of brand name prescriptions. To enable price competition, there is a need for quality assurance among otherwise substitutable generic drugs.</p>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"1018-1037"},"PeriodicalIF":1.4,"publicationDate":"2025-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jems.12632","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Digital Wings: The Effect of Digital Technology Adoption on Market Power","authors":"Haodan Tang, Gang Xu","doi":"10.1111/jems.12630","DOIUrl":"https://doi.org/10.1111/jems.12630","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper evaluates the causal impact of digital technology adoption (DTA) on firms' market power using data from Chinese listed manufacturing companies. Employing staggered difference-in-differences strategies, we find compelling evidence that DTA has a significant and substantial positive impact on market power. We also find supportive evidence for several underlying channels through which this impact occurs: improved research and development intensity, the upgrading of human capital structure, enhanced manufacturing servitization, and increased external attention. Furthermore, we establish an inverted U-shaped relationship between the share of DTA firms and resource misallocation within the industry-province dimension. This study contributes to the existing literature on the digitalization paradox by extending the investigation of the market performance of digital transformation to the context of developing countries.</p>\u0000 </div>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"991-1017"},"PeriodicalIF":1.4,"publicationDate":"2025-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429555","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Carrying Carbon? Negative and Positive Carbon Leakage With International Transport","authors":"Keisaku Higashida, Jota Ishikawa, Nori Tarui","doi":"10.1111/jems.12631","DOIUrl":"https://doi.org/10.1111/jems.12631","url":null,"abstract":"<p>This paper studies how carbon pricing affects greenhouse gas (GHG) emissions from international transport, production, and consumption of traded goods by modeling the international transport sector explicitly. Strategic behavior of a transport firm generates a novel mechanism of carbon leakage across borders and sectors. The effectiveness of carbon pricing depends on whether the backhaul problem (i.e., the imbalance of shipping volume in outgoing and incoming routes) is present. If the backhaul problem is absent, carbon pricing is effective in reducing global GHG emissions. With the backhaul problem, carbon pricing on goods production results in cross-border carbon leakage. However, strategic freight-rate setting by the transport firm mitigates this leakage. The opportunity for foreign direct investment (FDI) also affects carbon-pricing effectiveness because the transport firm tries to deter FDI. Surprisingly, carbon pricing in the transport sector may not affect GHG emissions at all. Moreover, domestic carbon pricing on goods production may decrease GHG emissions from both transport and foreign production even if there is no domestic production under FDI.</p>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"971-990"},"PeriodicalIF":1.4,"publicationDate":"2025-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jems.12631","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429276","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Beyond the Pipeline (Problem): Examining Racial and Ethnic Representation in 21st Century High Technology Self-employment","authors":"Rachel Marie Brooks Atkins, April Burrage","doi":"10.1111/jems.12629","DOIUrl":"https://doi.org/10.1111/jems.12629","url":null,"abstract":"<div>\u0000 \u0000 <p>Is the racial variation in the tech labor force and tech entrepreneurship associated with differences in STEM degree attainment? Using data from the American Community Survey, we examine whether racial disparities in tech employment and entrepreneurship reflect differences in STEM degree attainment within the labor force, a challenge known as the tech pipeline problem. We document that White workers are overrepresented in tech entrepreneurship, while Black, Hispanic, and Asian workers are underrepresented in tech entrepreneurship. Notably, Black workers are the only group underrepresented in tech employment relative to their share of the STEM-educated labor force. Our findings suggest that gaps in STEM degree attainment account for only a small portion of the racial disparity in the tech labor force. We also find important differences in the relationship between STEM degree attainment, tech employment, and tech entrepreneurship by race. We conclude the paper with a proposed research agenda for further study.</p>\u0000 </div>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"949-970"},"PeriodicalIF":1.4,"publicationDate":"2025-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Air Pollution and the Adoption of Industrial Robots in Firms","authors":"Weibing Li, Mingyang Li","doi":"10.1111/jems.12626","DOIUrl":"https://doi.org/10.1111/jems.12626","url":null,"abstract":"<div>\u0000 \u0000 <p>We document that air pollution can explain the adoption of industrial robots in firms. By leveraging the spatial discontinuity of air pollution caused by the Huai River policy along the Huai River and Qinling Mountains, the research applies a regression discontinuity design to accurately identify the positive impact of air pollution on the adoption of industrial robots in firms. Results obtained from various tests reveal that the relationship between the two is casual. From a mechanistic perspective, this paper posits that air pollution has an adverse effect on labor allocation. However, it also increases labor costs and environmental regulation intensity, thereby inducing firms to adopt more industrial robots. Furthermore, this study finds that industries vulnerable to light pollution, low energy consumption, and labor intensity exhibit a more pronounced positive relationship between air pollution and industrial robot adoption.</p>\u0000 </div>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"918-948"},"PeriodicalIF":1.4,"publicationDate":"2025-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429392","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daniil Larionov, Hien Pham, Takuro Yamashita, Shuguang Zhu
{"title":"First Best Implementation With Costly Information Acquisition","authors":"Daniil Larionov, Hien Pham, Takuro Yamashita, Shuguang Zhu","doi":"10.1111/jems.12628","DOIUrl":"https://doi.org/10.1111/jems.12628","url":null,"abstract":"<div>\u0000 \u0000 <p>We study mechanism design with flexible but costly information acquisition. There is one principal and four or more agents, who share a common prior belief over a set of payoff-relevant states. The principal proposes a mechanism to the agents, each of whom can then acquire information about the state by privately designing a signal device. As long as it is costless for each agent to acquire a signal that is independent of the state, there exists a mechanism that allows the principal to implement any social choice rule at zero information acquisition cost for the agents.</p>\u0000 </div>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"889-898"},"PeriodicalIF":1.4,"publicationDate":"2025-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429577","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Product Returns, Customer Segmentation, and Dynamic Pricing in the Online Retail Market","authors":"Julia Otte, Konstantinos Serfes, Veikko Thiele","doi":"10.1111/jems.12627","DOIUrl":"https://doi.org/10.1111/jems.12627","url":null,"abstract":"<div>\u0000 \u0000 <p>Online retailers can adopt generous return policies to entice customers to buy and try new products. In this article, we focus on the learning aspect of product returns and show how an online retailer can utilize returns to segment customers based on their individual valuations of a product. We derive the optimal dynamic pricing strategy, including a potential fee for product returns (restocking fee), which balances the benefits from effective customer segmentation and the costs associated with product returns. Strategic customers, who understand that their return decisions affect future prices, may choose to return the product even when their valuations exceed the initial price. To curb strategic returns, which compromise the effective segmentation of customers, it is optimal for the retailer to reduce the initial price of the product and charge a higher fee for returns. We also identify conditions so that it is optimal for a retailer to overcharge customers for product returns (i.e., the return fee exceeds the actual cost of a return). This allows the retailer to extract surplus from customers who have low product valuations and return the product, and is therefore a form of price discrimination.</p>\u0000 </div>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"899-917"},"PeriodicalIF":1.4,"publicationDate":"2025-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Paul Belleflamme, Thomas Lambert, Armin Schwienbacher
{"title":"Spillovers in Crowdfunding","authors":"Paul Belleflamme, Thomas Lambert, Armin Schwienbacher","doi":"10.1111/jems.12625","DOIUrl":"https://doi.org/10.1111/jems.12625","url":null,"abstract":"<p>We use novel entrepreneur-backer data to study the extent to which spillovers arise between projects displayed on crowdfunding platforms. We find that backers decide to back a particular project based on past contributions not only to that project—as documented by prior work—but also to other contemporaneous projects—a novel result. Our difference-in-differences estimates indicate that such “cross-project spillovers” account for 4% in the increase of contributions that projects generate on a daily basis. We show that recurrent backers are an important transmission channel of cross-project spillovers: By initiating social learning about project existence and quality, recurrent backers encourage future funding by other backers. Our results demonstrate that even though contemporaneous projects compete for funding, they jointly benefit from their common presence on the platform. These findings have significant implications for digital platform management and competition dynamics.</p>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"860-888"},"PeriodicalIF":1.4,"publicationDate":"2025-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jems.12625","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Francisco Gomez Martinez, Sander Onderstal, Maarten Pieter Schinkel
{"title":"Can Collaboration Promote Corporate Social Responsibility? Evidence From the Lab","authors":"Francisco Gomez Martinez, Sander Onderstal, Maarten Pieter Schinkel","doi":"10.1111/jems.12623","DOIUrl":"https://doi.org/10.1111/jems.12623","url":null,"abstract":"<p>Do agreements among competitors regarding corporate social responsibility (CSR) promote public-interest objectives? We address this question theoretically and experimentally in a duopoly framework in which firms choose between offering a “fair” and an “unfair” good to consumers. When the unfair good is traded, a negative externality is imposed on a third party. We vary whether or not the firms are allowed to coordinate on the type of good they sell, while remaining in price competition. We experimentally find, as the theory predicts, that only pairs of firms with low other-regarding preferences take the opportunity to coordinate CSR to differentiate their products, implying an increase in trade of the fair good. Yet there is an indication that consumers are harmed on balance. In the total sample, there is no significant impact on the fraction of fair goods traded, average market prices, producer surplus, and consumer surplus. Other-regarding preferences seem more important drivers of socially responsible behavior than opportunities for firms to coordinate their CSR activities.</p>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"830-859"},"PeriodicalIF":1.4,"publicationDate":"2024-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jems.12623","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429592","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Narrowing the “Digital Divide”: The Role of Fixed and Mobile Infrastructure","authors":"Ryan Hawthorne, Lukasz Grzybowski","doi":"10.1111/jems.12622","DOIUrl":"https://doi.org/10.1111/jems.12622","url":null,"abstract":"<p>We study the substitution between fixed and mobile broadband services in South Africa using survey data on 134,000 individuals collected between 2009 and 2014. In our discrete-choice model, individuals choose fixed or mobile voice and data services in a framework that allows these services to be considered substitutes or complements. We find that there is substantial heterogeneity in the perception of these services as substitutes/complements. We use our model to simulate the uptake of fixed and mobile broadband across various demographic groups under different policy interventions, including (i) a reduction in mobile data prices, (ii) an expansion in fixed-line coverage, (iii) a widespread distribution of computers, and (iv) broader Internet access in schools and workplaces. Our results suggest that, when applied in isolation, these interventions do not significantly increase Internet access among poorer households. In particular, the uptake of fixed broadband would remain limited, even if accessible to all households. This is because many households prefer mobile Internet access, perceiving it as a substitute for fixed broadband.</p>","PeriodicalId":47931,"journal":{"name":"Journal of Economics & Management Strategy","volume":"34 4","pages":"799-829"},"PeriodicalIF":1.4,"publicationDate":"2024-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jems.12622","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145429279","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}