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An empirical analysis of market performance in the car industry

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  • Manuchehr Irandoust

Abstract

This article focuses on the determinants of market performance in the car industry. Trade and market patterns are studied using firm-level international data. Econometric models are developed and evaluated for a sample of firms from the major producing countries for the period 1970–1985. Among the factors responsible for the market shares of the different firms are international differences in unit labor costs, income levels, the European Community (EC) and locally based production scales, and transaction costs in the form of trade barriers. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Manuchehr Irandoust, 1996. "An empirical analysis of market performance in the car industry," Open Economies Review, Springer, vol. 7(4), pages 327-348, October.
    • Handle: RePEc:kap:openec:v:7:y:1996:i:4:p:327-348
    DOI: 10.1007/BF01886368
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    References listed on IDEAS

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    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    2. Gagnon, Joseph E. & Knetter, Michael M., 1995. "Markup adjustment and exchange rate fluctuations: evidence from panel data on automobile exports," Journal of International Money and Finance, Elsevier, vol. 14(2), pages 289-310, April.
    3. Jaime de Melo & Patrick Messerlin, 1988. "Price, Quality and Welfare Effects of European VERs on Japanese Autos," Post-Print hal-03393287, HAL.
    4. Kirman, Alan & Schueller, Nathalie, 1990. "Price Leadership and Discrimination in the European Car Market," Journal of Industrial Economics, Wiley Blackwell, vol. 39(1), pages 69-91, September.
    5. Melo, Jaime de & Messerlin, Patrick A., 1988. "Price, quality and welfare effects of European VERs on Japanese autos," European Economic Review, Elsevier, vol. 32(7), pages 1527-1546, September.
    6. Robert C. Feenstra, 1988. "Quality Change Under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 131-146.
    7. Lucrezia Reichlin & Jacques Le Cacheux, 1992. "Exchange rates and import prices: evidence of pricing to market in the European car market," ULB Institutional Repository 2013/10189, ULB -- Universite Libre de Bruxelles.
    8. Feenstra, Robert C., 1985. "Automobile prices and protection: The U.S.-Japan trade restraint," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 49-68.
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    Cited by:

    1. Irandoust, Manuchehr, 1999. "Market structure and market shares in the car industry," Japan and the World Economy, Elsevier, vol. 11(4), pages 531-544, December.
    2. Leheyda, Nina, 2008. "Geographical and Multi-product Linkages of Markets: Impact on Firm Equilibrium Interactions (Some Evidence from the European Car Market)," ZEW Discussion Papers 08-119, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    market performance; product differentiation; price discrimination; trade barriers; transaction costs; L62;
    All these keywords.

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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