题目：Demographics and Entrepreneurship
报告人：王辉 北京大学 副教授
时间：2017-05-12 13:30 至 15:00
Home market advantage, where domestic firms usually enjoy higher shares/sales in local markets, has been found in many industries. We investigate the interaction between home market advantage and market power using a cross section of new car registration in China in 2012. We estimate an equilibrium oligopoly pricing model with consumer choice data. We find that demand of home products is more elastic on average despite a consistently stronger preference for them, and a substantial cost advantage for local manufacturers. Counterfactual analysis suggests that the cost advantage is the most important determinant of aggregated firm profits. Home market advantage, however, is primarily driven by home preference. The elasticity effect works against home preference and ignoring such effect would lead to an overestimate of home market advantage by 272.79 percent.