Brown Bag Seminar Industrial Economics

This paper studies how spillovers between two complementary markets affect firm entry and product variety, focusing on the cell phone market and the wireless service market in the Indian mobile phone industry during the 4G rollout. We highlight that the presence of international firms in the cell phone market accelerates 4G deployment in the wireless market, which in turn affects the product choices of domestic cell phone firms. Based on an estimated structural model of consumer demand, carriers' 4G network expansions, and cell phone firms' product choices, we conduct counterfactual simulations to assess the impact of two protectionist policies amid these spillover effects.

(joint with Chirantan Chatterjee and Debi Prasad Mohapatra)