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Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry
Abstract
This paper develops and estimates a model of the U.S. automobile industry. On the demand side, a discrete choice model is adopted, which is estimated using micro data from the Consumer Expenditure Survey. The estimation results are used in conjunction with population weights to derive aggregate demand. On the supply side, the automobile industry is modeled as an oligopoly with product differentiation. Equilibrium is characterized by the first-order conditions of the profit-maximizing firms. The estimation results are used in counterfactual simulations to investigate two trade policy issues: the effects of the voluntary export restraint, and exchange rate pass-through. Copyright 1995 by The Econometric Society.
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Citations
Cited by
Automobile Prices in Market Equilibrium
Berry, S., Levinsohn, J., & Pakes, A. (1995) · Econometrica · doi:10.2307/2171802 · Cited by 4,883
Globalization and the Gains From Variety
Broda, C., & Weinstein, D. E. (2006) · The Quarterly Journal of Economics · doi:10.1162/qjec.2006.121.2.541 · Cited by 2,478
Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry
Aghion, P., Dechezleprêtre, A., Hémous, D., Martin, R., & Van Reenen, J. (2016) · Journal of Political Economy · doi:10.1086/684581 · Cited by 1,604
Protection for Sale: An Empirical Investigation
Goldberg, P. K., & Maggi, G. (1999) · American Economic Review · doi:10.1257/aer.89.5.1135 · Cited by 854
Self-citationDynamics of Consumer Demand for New Durable Goods
Gowrisankaran, G., & Rysman, M. (2012) · Journal of Political Economy · doi:10.1086/669540 · Cited by 322
Metadata
- Authors
- Goldberg, P. K.
- Venue
- Econometrica
- Publisher
- JSTOR
- Published
- 1995-07
- Volume
- 63
- Issue
- 4
- Pages
- 891
- ISSN
- 0012-9682 (ISSN-L)
- OpenAlex
- W2172078338
- Cited by
- 704
- References
- 0
- FWCI
- 32.96
- Type
- journal article
- Language
- en
- Open access
- closed
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- Goldberg, P. K. (1995). Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry. Econometrica. https://doi.org/10.2307/2171803
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.