Farasat A.S. Bokhari , Franco Mariuzzo , Weijie Yan
{"title":"Antibacterial resistance and the cost of affecting demand: The case of UK antibiotics","authors":"Farasat A.S. Bokhari , Franco Mariuzzo , Weijie Yan","doi":"10.1016/j.ijindorg.2024.103082","DOIUrl":"10.1016/j.ijindorg.2024.103082","url":null,"abstract":"<div><p>Consumption of broad-spectrum antibiotics is associated with rising antimicrobial resistance (AMR) levels. The use of broad-spectrum drugs, particularly of cephalosporins, quinolones, and co-amoxiclav contributes the most to the rise in AMR. We use aggregate sales data on antibiotics from the UK to estimate structural demand models and reveal drug substitution patterns. We then simulate alternative tax schemes to evaluate the effectiveness of shifting demand from broad- to narrow-spectrum drugs. Our estimates suggest that these policies can be highly effective in demand management and come at a relatively low cost regarding changes in consumer and producer surplus.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"95 ","pages":"Article 103082"},"PeriodicalIF":1.7,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167718724000377/pdfft?md5=2de0a2ea491692c41128c112c66fb8db&pid=1-s2.0-S0167718724000377-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141411531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Naked exclusion with heterogeneous buyers","authors":"Ying Chen , Jan Zápal","doi":"10.1016/j.ijindorg.2024.103084","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103084","url":null,"abstract":"<div><p>We investigate the effects of buyer heterogeneity in a market where an incumbent firm deters entry when it signs enough exclusionary contracts with buyers. With heterogeneous buyers, several well-known results in exclusionary contracting with homogenous buyers are overturned and novel ones emerge. First, inefficient equilibria exist in which exclusionary contracts are signed but entry still occurs, and the loss of consumer surplus falls on small buyers. Second, sequential contracting may be more pro-competitive than simultaneous contracting in the sense that entry occurs under sequential but not simultaneous contracting. When this happens, sequential contracting Pareto dominates simultaneous contracting. We extend our analysis to consider downstream competition and breach of contract.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"95 ","pages":"Article 103084"},"PeriodicalIF":1.7,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141483706","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The welfare effects of input price discrimination revisited","authors":"Youping Li , Jianhu Zhang","doi":"10.1016/j.ijindorg.2024.103083","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103083","url":null,"abstract":"<div><p>This paper revisits the welfare effects of input price discrimination in the canonical model in which an upstream monopolist, under linear pricing, sells an intermediate good to downstream Cournot competitors with different marginal costs. By leveling the downstream players, input price discrimination may have a positive output effect, with the magnitude depending on the convexity of final market demand and its rate of change. When demand is linear, concave, or convex with limited and nonincreasing convexity, welfare is reduced compared with uniform pricing. Instead, when there is sufficient and nondecreasing convexity—often observed in constant elasticity demand—price discrimination increases total welfare.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"95 ","pages":"Article 103083"},"PeriodicalIF":1.7,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141483705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Robots and the rise of European superstar firms","authors":"Joel Stiebale, Jens Suedekum, Nicole Woessner","doi":"10.1016/j.ijindorg.2024.103085","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103085","url":null,"abstract":"<div><p>We study how a recent digital automation technology—industrial robots—is associated with the distribution of sales, productivity, markups, and profits within industries. Our empirical analysis combines data on the industry-level stock of industrial robots with firms' balance sheet data for six European countries from 2004 to 2013. We find that industries with high robot exposure are characterized by dis-proportional increases in productivity in those firms that are already most productive to begin with. Those firms are able to increase their markups and overall profits, while less profitable firms within the same industry, country and year tend to see declining markups and profits. We also find that variation in robot exposure across industries is correlated with declining labor income shares, mainly through adjustments within firms that are initially large, productive and have low labor cost-to -sales ratios. In sum, our paper suggests that European manufacturing industries with higher robot adoption rates experience a stronger emergence of <em>superstar firms</em> and more pronounced shifts of the functional income distribution away from wages and towards profits.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"97 ","pages":"Article 103085"},"PeriodicalIF":1.7,"publicationDate":"2024-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167718724000407/pdfft?md5=3e2d998e375f55c605e5165667371176&pid=1-s2.0-S0167718724000407-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141542941","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Performance bundling in multi-dimensional competitions","authors":"Jingfeng Lu , Bo Shen , Zhewei Wang","doi":"10.1016/j.ijindorg.2024.103073","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103073","url":null,"abstract":"<div><p>In this paper, we investigate circumstances in which performance bundling can be used as an effective instrument to foster effort supply in multi-dimensional competitions between two (possibly asymmetric) players. We find that besides a beneficial cost-saving effect that is diminishing with the asymmetry across players, performance bundling can cause a counterproductive unbalancing effect, which intensifies with this asymmetry. Thus, performance bundling (pure or partial) is desirable only if the players are sufficiently symmetric. Otherwise, a set of separate contests is optimal. Our model provides a new perspective for analyzing incentive schemes in contest environments that involve competitions in multiple dimensions.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"95 ","pages":"Article 103073"},"PeriodicalIF":1.5,"publicationDate":"2024-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140947726","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Broadband Internet access and health outcomes: Patient and provider responses in Medicare","authors":"Jessica Van Parys , Zach Y. Brown","doi":"10.1016/j.ijindorg.2024.103072","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103072","url":null,"abstract":"<div><p>High-speed internet has increased the amount of information available in health care markets. Online information may improve health outcomes if it reduces information frictions and helps patients choose higher quality providers or causes providers to improve quality. We examine how health outcomes for common procedures in Medicare changed after broadband internet rolled out across ZIP Codes from 1999 to 2008. Estimates imply that broadband expansion improved health outcomes by 5%. Broadband access primarily helped patients choose higher-quality providers; we also find some evidence that broadband improved provider quality. We use a structural model to decompose the improvements in patient outcomes over time. Counterfactual simulations imply that broadband roll-out was responsible for 16% of the improvement in outcomes by the end of the period.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"95 ","pages":"Article 103072"},"PeriodicalIF":1.5,"publicationDate":"2024-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140905359","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Combinable products, price discrimination, and collusion","authors":"Hendrik Döpper , Alexander Rasch","doi":"10.1016/j.ijindorg.2024.103071","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103071","url":null,"abstract":"<div><p>We analyze the effect of different pricing schemes on the ability of horizontally differentiated firms to sustain collusion when customers are able to mix products to achieve a better match of their preferences. We compare the impacts on the likelihood of collusion and on consumer welfare from three pricing schemes: two-part tariffs, linear prices, and quantity-independent fixed fees. We find that a ban of either price component of the two-part tariff makes it more difficult to sustain collusion at profit-maximizing prices. We also find that whereas linear pricing is the most beneficial pricing schedule for customers in the absence of collusion, it is the most harmful pricing schedule for customers in the presence of collusion.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"94 ","pages":"Article 103071"},"PeriodicalIF":1.5,"publicationDate":"2024-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167718724000262/pdfft?md5=7d04d162c093bf47727ac68c84d17ab0&pid=1-s2.0-S0167718724000262-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140618703","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Siting and operating incentives in electrical networks: A study of mispricing in zonal markets","authors":"Matthew Katzen , Gordon W. Leslie","doi":"10.1016/j.ijindorg.2024.103069","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103069","url":null,"abstract":"<div><p>The incentives electricity generators face in investment and output decisions hinge on market design. Under some zonal market designs, where profit-maximizing participants face a uniform regional price, achieving lowest-cost system-wide production can be impossible. Further, zonal designs can incentivize siting of intermittent renewables in inefficient locations behind network constraints, of concern for jurisdictions undergoing a clean energy transition. We develop measures of mispricing that compare the zonal prices generators receive to locational marginal prices that value congestion externalities from generator output. We apply these measures to show wind and solar generators are increasingly siting in constrained areas of the Australian network, and highlight sources of potential efficiency gains from adopting a nodal market design with locational marginal pricing.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"94 ","pages":"Article 103069"},"PeriodicalIF":1.5,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167718724000249/pdfft?md5=dc0c2c439c0ae754a97e94e2c56eef34&pid=1-s2.0-S0167718724000249-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140605357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The news hour: Welfare estimation in the market for local television news","authors":"Matthew J. Baker, Lisa M. George","doi":"10.1016/j.ijindorg.2024.103068","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103068","url":null,"abstract":"<div><p>We estimate the welfare consequences of local news broadcasting decisions in advertiser-funded television, a central question in media regulation. We model programming decisions as the outcome of a discrete game played by rival stations competing for advertising revenue (which depends on viewing) by choosing lineups of local news and entertainment broadcasts. Using program-level data on television viewing and advertising prices, we find modest under-provision of local news relative to the level that maximizes television viewing. Counterfactual simulations indicate an average deficit of 7.4 broadcasts per market, or 12.8% of local station broadcasts during the evening news hours. Most of this shortfall is in the 7:30 timeslot leading into prime time. We distinguish two sources of inefficiency: losses due to advertiser valuation of local news and entertainment viewers, and losses from classic business stealing. Losses from competition represent about one third of the estimated shortfall, suggesting gains to cooperation among competing stations.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"94 ","pages":"Article 103068"},"PeriodicalIF":1.5,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140551792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Overlapping ownership and input prices","authors":"Teis Lunde Lømo","doi":"10.1016/j.ijindorg.2024.103067","DOIUrl":"https://doi.org/10.1016/j.ijindorg.2024.103067","url":null,"abstract":"<div><p>This paper studies the effect of overlapping ownership in a setting where firms must contract with an input supplier before competing in the product market. Horizontal ownership among the competing firms can here affect the input prices set by the supplier. I derive conditions for when overlapping ownership raises, reduces, or has no effect on input prices. The key factor is how demand curvature varies with total output. When overlapping ownership reduces input prices, the cost reduction is in turn passed on to consumers. This indirect effect offsets – and can even outweigh – the direct negative effect of overlapping ownership on product market competition.</p></div>","PeriodicalId":48127,"journal":{"name":"International Journal of Industrial Organization","volume":"94 ","pages":"Article 103067"},"PeriodicalIF":1.5,"publicationDate":"2024-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0167718724000225/pdfft?md5=2b8ba21432b223c21798b6e5bce79056&pid=1-s2.0-S0167718724000225-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140308820","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}