FIRM-SPECIFIC INFORMATION, PRODUCT DIFFERENTIATION, AND INDUSTRY EQUILIBRIUM*

Product Innovation and Firm Survival in a Network Industry

This paper studies product innovation and firm survival in the U.S. ATM/debit card industry. The industry started with a few shared ATM networks in the early 1970s. The number of networks grew quickly up until the mid 1980s, but then declined sharply. We construct a theoretical model based on Jovanovic and MacDonald (1994). In contrast to their model focusing on cost-saving technological innova...

Target Firm-Specific Information and Acquisition Efficiency

Firm Level Interactions Between Exporting and Productivity : Industry Specific

This paper investigates interactions between exporting and productivity at the firm level, using a panel of firms in the UK chemical industry. This is both highly technology intensive and the UK’s largest exporting sector. We find exporters are more productive than non-exporters, but are also on average smaller. This superior productivity performance among exporters appears to be caused by both...

Technology of upstream firms and equilibrium product differentiation∗

Using a Hotelling-type product differentiation model (linear city model), we investigate the location strategies of upstream and downstream firms. We show that when transport costs of upstream firms are large, higher transport costs decrease the level of product differentiation of downstream firms. We also show that more inefficient transport technologies of upstream firms may enhance welfare. ...

A Multilevel Examination of Information Technology and Firm Performance: The Interaction of Industry and Firm Effects

Although research on the economic value of IT has predominantly focused on firm-level impacts, recent studies have begun incorporating industry-level variables to examine their impact on the value a firm obtains from its IT investments. This trend originated in the aim to offer better contextualized explanations for the differences in value firms obtained from their IT investments across differ...