Trucks without Bailouts: Equilibrium Product Characteristics for Commercial Vehicles
Thomas G. Wollmann
American Economic Review, 2018, vol. 108, issue 6, 1364-1406
The entry and exit of products, rather than firms, serve as the main equilibrating force in many markets, so accurately predicting changes from a merger or bankruptcy should incorporate this behavior. This paper estimates a structural model of the US commercial vehicle market and demonstrates the importance of allowing for endogenous product offerings in the context of the $85 billion automotive industry bailout in 2009. Under alternate policies that facilitate an acquisition or liquidation of GM and Chrysler, product entry and exit moderate markup increases and output decreases by up to three-quarters.
JEL-codes: D22 G33 G34 H81 L13 L62 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20160863
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... 1fKji5tI9a8QRy0nmCfw (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... 24glkbmZrXYOgjGNEbKO (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:108:y:2018:i:6:p:1364-1406
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().