Replication data for: Competitive Pressure and the Adoption of Complementary Innovations

Principal Investigator(s): View help for Principal Investigator(s) José C. Pernías; Eugenio J. Miravete; Tobias Kretschmer

Version: View help for Version V1

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KMP-AER-data			08/02/2019 07:26:PM
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Project Citation:

Project Description

Summary: Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial increase in competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation adoption strategies following the elimination of exclusive territories. Using French data we evaluate the existence of complementarities between the adoption of software applications and the scale of production. Firms view these innovations as substitutes and concentrate their effort in one type of software as they expand their scale of production. Results are robust to the existence of unobserved heterogeneity. (JEL D24, K21, L21, L22, L62, O32)

Scope of Project

JEL Classification:
      D24 Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
      L21 Business Objectives of the Firm
      O32 Management of Technological Innovation and R&D
      K21 Antitrust Law
      L22 Firm Organization and Market Structure
      L62 Automobiles • Other Transportation Equipment • Related Parts and Equipment

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V1 [2019-08-02]

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