Competition, Product Proliferation and Welfare: A Study of the U.S.\ Smartphone Market

Chenyu Yang and Ying Fan
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Chenyu Yang: University of Michigan, Ann Arbor

No 758, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: We develop and estimate a structural model of the U.S. smartphone market. Based on the estimates, we study (1) whether there are too few or too many products in the market from a welfare point of view; and (2) how competition affects product offerings in the market. We find that there are too few products and a reduction in competition further decreases the product offerings. These results suggest that merger policies should be stricter when we take into account the effect of merger on firms' product choices in addition to its effect on prices.

Date: 2016
New Economics Papers: this item is included in nep-com, nep-dge, nep-reg, nep-sog and nep-tid
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Competition, Product Proliferation, and Welfare: A Study of the US Smartphone Market (2020)
Working Paper: Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone Market (2016)
Working Paper: Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone Market (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed016:758

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