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How Brand Names Affect the Price Setting of Carmakers Producing Twin Cars?

Author

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  • Nora Lado
  • Omar Licandro
  • Francisco Pérez Bermejo

Abstract

In the automobile sector, it is a usual practice that independent carmakers engage in the development and production of a common car model, the so-called twin-cars. From the point of view of the marketing literature, we claim that carmakers should not charge different brand premia on separate models of a twin car. We use hedonic regressions and panel data estimators to valuate brand premia, by controlling for quality diversity. We find that there are no significant differences between brand premia of separate models of a twin car, even if brand premia may differ across different carmakers.

Suggested Citation

  • Nora Lado & Omar Licandro & Francisco Pérez Bermejo, "undated". "How Brand Names Affect the Price Setting of Carmakers Producing Twin Cars?," Working Papers 2003-27, FEDEA.
    • Handle: RePEc:fda:fdaddt:2003-27
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    References listed on IDEAS

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    1. repec:ucp:bknber:9780226304557 is not listed on IDEAS
    2. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 239-253.
    3. Erdem, Tulin & Broniarczyk, Susan & Charavarti, Dipankar & Kapferer, Jean-Noel & Keane, Michael & Roberts, John & Steenkamp, Jan-Benedict & Swait, Joffre & Zettelmeyer, Florian, 1999. "Brand Equity, Consumer Learning and Choice," MPRA Paper 53022, University Library of Munich, Germany.
    4. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
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    Cited by:

    1. Bourreau, Marc & Doğan, Pınar & Manant, Matthieu, 2016. "Size of RJVs with partial cooperation in product development," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 77-106.
    2. Bourreau, Marc & Dogan, Pinar & Manant, Matthieu, 2010. "Size of RJVs and Degree of Cooperation in Product Development," Working Paper Series rwp10-047, Harvard University, John F. Kennedy School of Government.
    3. José A. Herce, "undated". "Could this ever happen in Spain? Economic and policy aspects of a SARS-like episode," Working Papers 2004-09, FEDEA.
    4. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, April.
    5. Andrew T. Ching & Masakazu Ishihara, 2012. "Measuring the Informative and Persuasive Roles of Detailing on Prescribing Decisions," Management Science, INFORMS, vol. 58(7), pages 1374-1387, July.

    More about this item

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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