24 April 2006 I've compiled a list of empirical industrial organization papers below. I would like each of you to pick a different one of them and do a report of about three pages on it. The report should start by summarizing the paper, comment on its good and bad points, and suggest ways that the paper could be improved. These ways can be both major (use a completely different estimation technique) and minor (correct a typo, or label the diagrams differently). This will be due April 27, the day of the last class. Here are some good questions to ask yourself in reading a paper or writing a referee report. I have taken them from John Asker & Mariagiovanna Baccara's syllabus, "Graduate Industrial Organisation II," http://pages.stern.nyu.edu/~jasker/gradio_syllabus.pdf. I'd like you to answer all that apply to the paper you are reporting on. 1. What is the research question? How does the research question relate to existing theoretical and empirical literature? Why is it worth asking? 2. What is are the data being used here? How was it collected? What are the important variables? How are they defined? What is the unit of observation? 3. What is the empirical strategy for answering this research question? If you had an ideal data set, what would it look like? What empirical strategy would you use on it? How is the data set in this paper different from that ideal data set? How does identification work in this paper? What are the sources of exogenous variation? How much of the identification is coming from the model and how much from the data? 4. What econometric techniques are being used in this paper? Are they appropriate? What is the central estimating equation (or equations)? What is in the unobservable component? What are the instruments being used? Do you think they are valid? How does the econometric model relate to the theoretical framework? 5. What are the main results of the paper? What are the economic implications of the results? 6. What do we learn from this paper? 7. What questions does this paper leave unanswered? How might you answer them? Each person in the class will pick a separate paper from the list below, with the choice of paper being first-come, first-served. LIST OF PAPERS (Woo Hyun Chung) " Bureaucratic corruption, environmental policy and inbound US FDI: theory and evidence - group of 5 » PG Fredriksson, JA List, DL Millimet - Journal of Public Economics, 2003 - Berry, S. (1994):"Estimating Discrete Choice Models of Product Differentiation," Rand Journal of Economics, 25(2), 242-62. Goldberg, P.K. (1995): "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry," Econometrica, 63(July), 891-951. (Zhang) Nevo and Wolfram , " Why do manufacturers issue coupons? an empricial analysis of breakfast cereals" 2002 Rand Journal of Economics. Pesendorfer, M., and P. Schmidt-Dengler (2004): "Least Squares Estimators for Dynamic Games," mimeo, Yale University. Trajtenerg, M. (1989): "The Welfare Analysis of Product Innovations, with an Application to Computed Tomography Scanners," Journal of Political Economy, 97, 444-79. Hausman, Leonard & Zona (1994) Competitive Analysis with Differenciated Products, Annales d’Econ. et Stat. (Chenguang Li) Nevo (2001) Measuring Market Power in the Ready-to-Eat Cereal Industry, Econometrica 69(2) 307-322 (Jang) Benkard, L. (2000): "Learning and Forgetting: The Dynamics of Commercial Aircraft Production," American Economic Review, 90(4), 1034-54. (Xiaoxun Gao) Ackerberg, D. (2001): "Empirically Distinguishing Informative and Prestige Effects of Advertising," Rand Journal of Economics, 32(2), 316-33. Seim, K. (2002): "An Empirical Model of Firm Entry with Endogenous Product-Type Choices," mimeo, Stanford University. Olley, S., and A. Pakes (1996): "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, 64(6), 1263-97. (Qi Meng ) Petrin (2002) Quantifying the Benefits of New Products: The Case of the Minivan, JPE 110(4) 705-29. Leslie (2002) Price Discrimination in Broadway Theatre, forthcoming in RAND, available on Phillip Leslie’s website at Stanford GSB. Goldberg (1996) Dealer Price Discrimination in New Car Purchases: Evidence from the CES, JPE 104(3) 622-54. (hankwon Bae) Gandal, N., M. Kende, and R. Rob (2000): "The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players," Rand Journal of Economics, 31(1), 43-61. Borenstein and Rose (1994) Competition and Price Dispersion in the US Airline Industry, JPE 653-683 Miravete and Roeller (2003) Competitive Nonlinear Pricing in Duopoly Equilibrium: The Early US Cellular Telephone Industry, CEPR Discussion Paper 4069. (on Eugenio Miravete’s web site at UPenn) (Ian McCarthy) Staiger and Wolak, F. (1992), "Collusive Pricing and Capacity Constraints in the presence of 7 Demand Uncertainty," Rand Journal of Economics 23, 203- 220. Landjow (1998) Patent Protection in the Shadow of Infringement: Simulation Estimations of Patent-Value, ReStud 65(4), 671-710. Tucker (2004) Network Effects and the Role of Influence in Technology Adoption, mimeo, Stanford GSB [available on Catherine’s web site] Adams and Jaffe (1996) Bounding the effects of R&D: An Investigation Using Matched Establishment- Firm Data RAND 27(4) 700-21 Ackerberg and Botticini (1999) Endogenous Matching and the Empirical Determinants of Contractual Form, JPE forthcoming. (WAROLIN) Gilbert and Hastings, Vertical Integration in Gasoline Supply: An Empirical Test of Raising Rivals’ Costs, University of California Energy Institute Power Working Paper, No. PWP-084 Mortimer (2001) "Vertical Contracts in the Video Rental Industry", mimeo, Harvard University (Dong Kyun Kwak) Chipty (2001) Vertical Integration, Market Foreclosure and Consumer Welfare, AER 91(3) 428- 453 Villas-Boas (2002) Vertical Contracts Between Manufacturers and Retailers: An Empirical Analysis, CUDARE Working Paper 943 (Available on Sophia’s web site at Berkeley) Brenkers and Verboven (2002) Liberalising a Distribution System: the European Car Market, mimeo, K.U. Leuven. Baker and Hubbard (2003), Make vs Buy in Trucking: Asset Ownership, Job Design and Information, AER 551-572 (Wang) Chul Chung Minjae Song Preference for Cultural Goods: The Case of Korea Film Market