What Drives Home Market Advantage?

A. Kerem Coşar, Paul L. E. Grieco, Shengyu Li and Felix Tintelnot

No 21583, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: F14 F23 L11 L16 L62 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-int and nep-mkt
Note: IO ITI PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published as A. Kerem Coşar, 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.

Downloads: (external link)
http://www.nber.org/papers/w21583.pdf (application/pdf)

Related works:
Journal Article: What drives home market advantage? (2018)
Working Paper: What Drives Home Market Advantage? (2015)
Working Paper: What Drives Home Market Advantage? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:21583

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21583

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().