蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Trucks without Bailouts: Equilibrium Product Characteristics for Commercial Vehicles
蝌蚪网 Review
(pp. 1364–1406)
Abstract
The entry and exit of products, rather than firms, serve as the main equilibrating force in many markets, so accurately predicting changes from a merger or bankruptcy should incorporate this behavior. This paper estimates a structural model of the US commercial vehicle market and demonstrates the importance of allowing for endogenous product offerings in the context of the $85 billion automotive industry bailout in 2009. Under alternate policies that facilitate an acquisition or liquidation of GM and Chrysler, product entry and exit moderate markup increases and output decreases by up to three-quarters.Citation
Wollmann, Thomas G. 2018. "Trucks without Bailouts: Equilibrium Product Characteristics for Commercial Vehicles." 蝌蚪网 Review 108 (6): 1364–1406. DOI: 10.1257/aer.20160863Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- G33 Bankruptcy; Liquidation
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- H81 Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- L13 Oligopoly and Other Imperfect Markets
- L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment