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The Evolution of Market Power in the U.S. Automobile Industry*
Resource type
Authors/contributors
- Grieco, Paul L E (Author)
- Murry, Charles (Author)
- Yurukoglu, Ali (Author)
Title
The Evolution of Market Power in the U.S. Automobile Industry*
Abstract
We construct measures of industry performance and welfare in the U.S. automobile market from 1980 to 2018. We estimate a demand model using product-level data on market shares, prices, and attributes, and consumer-level data on demographics, purchases, and stated second choices. We estimate marginal costs assuming Nash-Bertrand pricing. We relate trends in consumer welfare and markups to trends in market structure and the composition of products. Although real prices rose, we find that markups decreased substantially, and the fraction of total surplus accruing to consumers increased. Consumer welfare increased over time due to improved product quality and improved production technology.
Publication
The Quarterly Journal of Economics
Volume
139
Issue
2
Pages
1201-1253
Date
2024-05-01
Journal Abbr
The Quarterly Journal of Economics
ISSN
0033-5533
Accessed
6/28/24, 1:03 PM
Library Catalog
Silverchair
Citation
Grieco, P. L. E., Murry, C., & Yurukoglu, A. (2024). The Evolution of Market Power in the U.S. Automobile Industry*. The Quarterly Journal of Economics, 139, 1201–1253.
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