What Drives Home Market Advantage? / A. Kerem Cosar, Paul L. E. Grieco, Shengyu Li, Felix Tintelnot.

Format:

Book

Author/Creator:

Cosar, A. Kerem.

Contributor:

National Bureau of Economic Research.

Grieco, Paul L. E.

Li, Shengyu.

Tintelnot, Felix.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21583.

NBER working paper series no. w21583

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a preference for home brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks. Furthermore, we also find that consumers favor domestically producing brands regardless of the historical brand origin.

Notes:

Print version record

September 2015.