IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v139y2024i2p1201-1253..html
   My bibliography  Save this article

The Evolution of Market Power in the U.S. Automobile Industry

Author

Listed:
  • Paul L E Grieco
  • Charles Murry
  • Ali Yurukoglu

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.

Suggested Citation

  • Paul L E Grieco & Charles Murry & Ali Yurukoglu, 2024. "The Evolution of Market Power in the U.S. Automobile Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 1201-1253.
    • Handle: RePEc:oup:qjecon:v:139:y:2024:i:2:p:1201-1253.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/qje/qjad047
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:139:y:2024:i:2:p:1201-1253.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/qje .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.