Topic Industry

Common Ownership in the US Pharmaceutical Industry: A Network Analysis

We investigate patterns in common ownership networks between firms that are active in the US pharmaceutical industry for the period 2004-2014. Our main findings are that “brand firms” — i.e. firms that have R&D capabilities and launch new drugs — exhibit relatively dense common ownership networks with each other that further increase significantly in density over time, whereas the network of “generic ...

Diversification, Common Ownership, and Strategic Incentives

We argue that within-industry investor diversification is directly related to common ownership incentives (profit loads on rival firms by the manager of a firm) in product markets. Because of their respective investment strategies, passive investors are naturally more diversified than active investors. If more money flows from active toward passive investors, then common ownership incentives increase. ...

Knowledge-Based Capital and Productivity Divergence

Understanding the causes of the slowdown in aggregate productivity growth is key to maintaining the competitiveness of advanced economies and ensuring long-term economic prosperity. This paper is the first to provide evidence that investment in Knowledge-Based Capital (KBC), despite having a positive effect on productivity at the micro level, is a driver of the weak productivity performance at the ...

Evaluation Support Study on the EU Rules on State Aid for Access to Finance for SMEs: Final Report

Local Power Markets

In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local power markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and welfare in local power markets. We show that local power markets with peer-to-peer trading are competitive and ...

Three Essays on the Economics of Online Platforms

Die digitale Ökonomie hat unzählige Märkte nachhaltig verändert. Insbesondere Online Plattformen bieten eine noch nie dagewesene Auswahl an Produkten, gekoppelt mit innovativer Technologie, die das Zusammenfinden von Angebot und Nachfrage vereinfacht, Vertrauen aufbaut und Suchkosten reduziert. Gleichzeitig hat die neuartige Natur dieser Plattformen dazu geführt, dass sie teilweise mit den etablierten ...

Learning from Data and Network Effects: The Example of Internet Search

The rise of dominant firms in data driven industries is often credited to their alleged data advantage. Empirical evidence lending support to this conjecture is surprisingly scarce. In this paper we document that data as an input into machine learning tasks display features that support the claim of data being a source of market power. We study how data on keywords improve the search result quality ...

Industry Conversion Tables for German Firm-Level Data

Gross Employment Effects in the Renewable Energy Industry in Germany: An Input–Output Analysis from 2000 to 2018

The purpose of this paper is to provide detailed insights into an approach to measure gross employment of the renewable energy (RES) industry in Germany in order to improve transparency and comparability. The method applied for the assessment of gross employment figures follows the input–output (IO) modeling approach and covers direct as well as indirect employment effects.All-in-all, four different ...

Partitioned Pricing and Consumer Welfare

In online commerce, obfuscation strategies by sellers are hypothesized to mislead consumers to their detriment and to the profit of sellers. One such obfuscation strategy is partitioned pricing in which the price is split into a base price and add-on fees. While empirical evidence suggests that partitioned pricing affects consumer decisions through salience effects, its consumer welfare consequences ...