IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v47y2015i2p123-128.html
   My bibliography  Save this article

On the size of home bias

Author

Listed:
  • Carlos Noton

Abstract

Home bias in consumption refers to consumers strongly preferring domestic over foreign products. However, if the products were to be differentiated, would there then be a taste for country of origin? If this were the case, what would be the market shares if consumers were to only value prices and characteristics and not the brand's nationality? Using a structural demand, we account for home bias in the European car market and compute the counterfactual market shares in the absence of home bias. We find that home-biased preferences explain more than half of the market shares of domestic car manufacturers in their domestic markets, limiting the role of trade frictions.

Suggested Citation

  • Carlos Noton, 2015. "On the size of home bias," Applied Economics, Taylor & Francis Journals, vol. 47(2), pages 123-128, January.
  • Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:123-128
    DOI: 10.1080/00036846.2014.964832
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2014.964832
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00036846.2014.964832?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Noton, Carlos, 2016. "Structural estimation of price adjustment costs in the European car market," International Journal of Industrial Organization, Elsevier, vol. 49(C), pages 105-147.
    2. Mar Delgado-Téllez & Enrique Moral-Benito & Francesca Viani, 2020. "An anatomy of the Spanish current account adjustment: the role of permanent and transitory factors," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(4), pages 501-529, December.

    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:taf:applec:v:47:y:2015:i:2:p:123-128. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.