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Market share response and competitive interaction: The impact of temporary, evolving and structural changes in prices

โœ Scribed by Shuba Srinivasan; Peter T.L. Popkowski Leszczyc; Frank M. Bass

Book ID
117361384
Publisher
Elsevier Science
Year
2000
Tongue
English
Weight
280 KB
Volume
17
Category
Article
ISSN
0167-8116

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We determine empirically how automakers accommodate shocks to demand. Using data on production, sales, and transaction prices, we estimate a dynamic profit maximization model of the firm. We demonstrate that when an automaker is hit with a vehicle-specific demand shock, sales respond immediately and