What Drives Home Market Advantage?
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and tas...
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| Veröffentlicht in: | NBER Working Paper Series 2015-09, p.21583 |
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| creator | Grieco, Paul Li, Shengyu Coşar, Kerem Tintelnot, Felix |
| description | In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a preference for home brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks. Furthermore, we also find that consumers favor domestically producing brands regardless of the historical brand origin. |
| doi_str_mv | 10.3386/w21583 |
| format | Article |
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| ispartof | NBER Working Paper Series, 2015-09, p.21583 |
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| language | eng |
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| source | NBER Working Papers; Alma/SFX Local Collection |
| subjects | Analysis Automobile industry Automobile sales Brand identification Costs Domestic markets Economic theory Elasticity of demand Estimates Industrial Organization International markets International trade International Trade and Investment Manufacturing Market segmentation Market shares Preferences Production costs Productivity, Innovation, and Entrepreneurship Studies Supply & demand Trade liberalization |
| title | What Drives Home Market Advantage? |
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