Luis Cabral

Stern School of Business
New York University
44 West 4th Street
New York, NY 10012

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NBER Working Papers and Publications

April 2013Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry
with Zhu Wang, Daniel Yi Xu: w18973
Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and work as a special type of intra-industry spillovers. The presence of other firms in the same industry has a negligible (or even negative) effect. Finally, local inputs account for some agglomeration in the short run, but the effects are much more profound in the long run.
April 2011Comment on "How Entrepreneurs Affect the Rate and Direction of Inventive Activity"
in The Rate and Direction of Inventive Activity Revisited, Josh Lerner and Scott Stern, editors
March 2004The Dynamics of Seller Reputation: Theory and Evidence from eBay
with Ali Hortacsu: w10363
We propose a basic theoretical model of eBay's reputation mechanism, derive a series of implications and empirically test their validity. Our theoretical model features both adverse selection and moral hazard. We show that when a seller receives a negative rating for the first time his reputation decreases and so does his effort level. This implies a decline in sales and price; and an increase in the rate of arrival of subsequent negative feedback. Our model also suggests that sellers with worse records are more likely to exit (and possibly re-enter under a new identity), whereas better sellers have more to gain from buying a reputation' by building up a record of favorable feedback through purchases rather than sales. Our empirical evidence, based on a panel data set of seller feedback h...

Published: LUÍS CABRAL & ALI HORTAÇSU, 2010. "THE DYNAMICS OF SELLER REPUTATION: EVIDENCE FROM EBAY," The Journal of Industrial Economics, vol 58(1), pages 54-78.

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