The Determinants of Stock Price Volatility: An Industry Study
This paper focuses on a single simple stylized fact which stands out from the post-war history of the US Car industry, namely that industry concentration fell just at the same time as industry advertising expenditures rose sharply. Since both events were almost certainly caused by the entry and market penetration of (largely) foreign owned car producers, this stylized fact raises interesting questions about whether - and if so, how - advertising affects entry. We use a model of consumer switching behaviour to help interpret the facts. The model predicts a simple linear association between market and advertising shares (which we observe fairly clearly at two different levels of aggregation in the data), and provides the basis for arguing that advertising can facilitate entry, but only for finite periods of time.
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Feb 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.open.ac.uk/socialsciences/about-the-faculty/departments/economics/research/discussion-papers.phpEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:opn:wpaper:39. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IT team member)
If references are entirely missing, you can add them using this form.