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The local effects of an innovation: Evidence from the French fish market

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  • Gobillon, Laurent
  • Wolff, Fran�ois-Charles

Abstract

In this paper, we investigate the effect on quality, quantity and prices of an innovative fishing gear introduced for a subsample of vessels on a single wholesale fish market in France. Estimations are conducted using transaction data over the 2009-2011 period during which the innovation was introduced. Using a difference-in-differences approach around the discontinuity, we find that for the treated the innovation has a large effect on quality (29.2 percentage points) and prices (23.2 percentage points). A shift in caught fish species is observed and new targeted species are fished very intensively. We also quantify the treatment effect on the treated market from aggregate market data using factor models and a synthetic control approach. We find a sizable effect of the innovation on market quality which is consistent with non-treated vessels adapting their fishing practices to remain competitive. The innovation has no effect on market quantities and prices.

Suggested Citation

  • Gobillon, Laurent & Wolff, Fran�ois-Charles, 2017. "The local effects of an innovation: Evidence from the French fish market," CEPR Discussion Papers 11757, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11757
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    References listed on IDEAS

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    More about this item

    Keywords

    difference in differences; discontinuity; factor models; fish; innovation; product prices; product quality; synthetic controls;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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