Automobile replacement: a dynamic structural approach

Schiraldi, Pasquale

doi:10.1111/j.1756-2171.2011.00133.x

Cited by 165 publications

(116 citation statements)

References 34 publications

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“…The BLP framework has been extended to incorporate dynamic effects with forward-looking consumers [Melnikov, 2013, Hendel and Nevo, 2006, Gowrisankaran and Rysman, 2012, Schiraldi, 2011. We base our model on the inclusive value approach suggested by Melnikov [2013] and further expanded by Gowrisankaran and Rysman [2012] (G&R, hereafter), who formulate a model of dynamic demand where the evolution of the market is captured by a single inclusive value variable representing dynamic purchase utility that is specific to an individual consumer and varies over time.…”

Section: Modelmentioning

confidence: 99%

The Dynamic Effects of Bundling as a Product Strategy

Derdenger

Kumar²

2013

Marketing Science

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Several key questions in bundling have not been empirically examined: Is mixed bundling more effective than pure bundling or pure components? Does correlation in consumer valuations make bundling more or less effective? Does bundling serve as a complement or substitute to network effects? To address these questions, we develop a consumer-choice model from micro-foundations to capture the essentials of our setting, the handheld video game market. We provide a framework to understand the dynamic, long-term impacts of bundling on demand. The primary explanation for the profitability of bundling relies on homogenization of consumer valuations for the bundle, allowing the firm to extract more surplus. We find bundling can be effective through a novel and previously unexamined mechanism of dynamic consumer segmentation, which operates independent of the homogenization effect, and can in fact be stronger when the homogenization effect is weaker. We also find that bundles are treated as separate products (distinct from component products) by consumers. Sales of both hardware and software components decrease in the absence of bundling, and consumers who had previously purchased bundles might delay purchases, resulting in lower revenues. We also find that mixed bundling dominates pure bundling and pure components in terms of both hardware and software revenues. Investigating the link between bundling and indirect network effects, we find that they act as substitute strategies, with a lower relative effectiveness for bundling when network effects are stronger.

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Section: Modelmentioning

confidence: 99%

The Dynamic Effects of Bundling as a Product Strategy

Derdenger

Kumar²

2013

Marketing Science

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“…Brownstone et al (1996) involve vehicle transaction decisions, that is, adding a vehicle into the respondent's household, replacing or disposing of an existing vehicle. Schiraldi (2011) also proposes a model of vehicle transaction, which involves a temporal dimension and includes both new and used car markets. Mueller and de Haan (2009) investigate the impact of incentives on car purchase.…”

Section: • Model Applicationmentioning

confidence: 99%

Forecasting the Demand for Electric Vehicles: Accounting for Attitudes and Perceptions

Glerum

Stankovikj

Thémans

et al. 2014

Transportation Science

156

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In the context of the arrival of electric vehicles on the car market, new mathematical models are needed to understand and predict the impact on the market shares. This research provides a comprehensive methodology to forecast the demand of a technology which is not widespread yet, such as electric cars. It aims at providing contributions regarding three issues related to the prediction of the demand for electric vehicles: survey design, model estimation and forecasting. We develop a stated preferences (SP) survey with personalized choice situations involving standard gasoline/diesel cars and electric cars. We specify a hybrid choice model accounting for attitudes towards leasing contracts or practical aspects of a car in the decision-making process. A forecasting analysis based on the collected SP data and market data is performed to evaluate the future demand for electric cars.

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“…A consequence of this e¤ect is the sharp decrease in sales following the expiry of the scheme. Both Adda and Cooper (2000) and Schiraldi (2011) …nd that the scrapping policies boost sales of new cars in the short-run, where bigger demand expansions in the short-run result in larger demand contractions in the long-run.…”

Section: Support Granted Through Scrapping Schemesmentioning

confidence: 99%

Public Support for the European Car Industry: An Integrated Analysis

2012

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Non-technical summaryAs a response to the recent economic and financial crisis the European Commission, at the end of 2008, adopted the "Temporary Framework for State aid measures" to tackle the effects of the credit squeeze on the real economy. This Framework introduced new instruments for State aid and simplified legal procedures for granting State aid. In parallel to those temporary instruments, traditional public support instruments (e.g. scrapping schemes, loans of the European Investment Bank) were used to support the European economy to overcome the crisis. The European car industry appears to be one of the major beneficiaries of that overall public support and especially under the Temporary Framework. However, although public support measures can help address the short-term challenges the car industry faces, they may undermine its long-term competitiveness, e.g. by postponing the settlement of structural problems (such as overcapacity).In this paper we provide an overview of public support for the European car industry during the past decade. First, we identify the most relevant instruments of public support, and review their economic assessment. The European Commission increasingly recognizes the role of economic analysis in controlling public aid to the car industry. However, the degree of economic assessment varies across different instruments of public support and individual state aid cases. Moreover, the state aid legislative framework is open to derogations and interpretations. In particular, the "Temporary Framework for State aid measures" de facto implied a relaxation of the state aid rules and foresaw no formal control of individual state aids.Second, we estimate the amount of public support for European car manufacturers. Three factors complicate the overall quantification of public support for each instrument: (i) the Commission does not scrutinize, and hence does not quantify all public support measures; (ii) the available information depends on whether the state aid is granted to individual companies or in the form of general schemes; and (iii) the available information depends on whether the aid is granted in the form of a grant, soft loan or guarantee. Our lower bound estimate of state aid suggests that the aid declined over the pre-crisis period, but peaked to €1.2 billion as a response to the financial and economic crisis in 2009. Perhaps even more strikingly, this state aid was combined with an unprecedented amount of public support gra...

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Automobile replacement: a dynamic structural approach

Cited by 165 publications

References 34 publications

The Dynamic Effects of Bundling as a Product Strategy

The Dynamic Effects of Bundling as a Product Strategy

Forecasting the Demand for Electric Vehicles: Accounting for Attitudes and Perceptions

Public Support for the European Car Industry: An Integrated Analysis

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