NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Shengyu Li

Business School
Durham University
Mill Hill Lane
Durham, DH1 3LB
UK

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Institutional Affiliation: Durham University

NBER Working Papers and Publications

September 2015What Drives Home Market Advantage?
with A. Kerem Cosar, Paul L. E. Grieco, Felix Tintelnot: w21583
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a preference for home brands is the single most important driver of home market advantage - even after controlling for brand histories and dealer networks. Furthermore, we also find that consumers favor domestically producing brands regardless of the historical brand origin.

Published: A. Kerem Co┼čar, Paul L.E. Grieco, Shengyu Li, Felix Tintelnot, What drives home market advantage?, Journal of International Economics, Volume 110, 2018, Pages 135-150, ISSN 0022-1996, https://doi.org/10.1016/j.jinteco.2017.11.001. citation courtesy of

 
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