| 来源类型 | Working Paper
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| 规范类型 | 报告
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| DOI | 10.3386/w26320
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| 来源ID | Working Paper 26320
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| What's the Big Idea? Multi-Function Products, Firm Scope and Firm Boundaries |
| Mengxiao Liu; Daniel Trefler
|
| 发表日期 | 2019-09-30
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| 出版年 | 2019
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| 语种 | 英语
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| 摘要 | Products often bundle together many functions e.g., smartphones. The firm develops the big idea (which functions to bundle) and then chooses one supplier per function. We develop a model featuring holdup in which the firm's bargaining power declines in the number of suppliers. Greater scope as measured by the number of suppliers exacerbates holdup, but this is partially offset by the appropriate choice of vertical integration or outsourcing. Our main result flows from the empirical observation that the number of functions varies across products within an industry (firm heterogeneity). We introduce the notion of an 'ideas-oriented' industry in which more productive firms have higher marginal returns to introducing a new function. We show that more productive firms will (1) have more suppliers and (2) be more likely to integrate those suppliers. We take this to the data using a neural network to predict whether or not each of 29 million PATSTAT patent applications involves new/improved functions. We merge these patents with Capital IQ data on 55,000 companies and their supplier networks. We show that in industries where patents are skewed towards new or improved functions, more productive firms have more suppliers and are more likely to integrate these suppliers. |
| 主题 | International Economics
; Trade
; Industrial Organization
; Market Structure and Firm Performance
; Firm Behavior
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| URL | https://www.nber.org/papers/w26320
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| 来源智库 | National Bureau of Economic Research (United States)
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| 引用统计 |
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/583992
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推荐引用方式
GB/T 7714 |
Mengxiao Liu,Daniel Trefler. What's the Big Idea? Multi-Function Products, Firm Scope and Firm Boundaries. 2019.
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文件名：
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w26320.pdf
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格式：
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Adobe PDF
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