Industrial organisation

Lorenzo Coviello, Uri Gneezy, Lorenz Götte, 18 February 2018

Measuring the returns to search engine marketing accurately is difficult, but one study suggested that if eBay were to suspend its branded search ads, the volume of traffic to the site would remain virtually unchanged. Based on a field test involving a website for automotive information in the US, this column argues that money spent on search engine marketing by smaller brands may be more effective than previously documented. Only about half of the traffic normally flowing through branded search ads still flowed to the site when it relied only on organic search links.

Daisuke Fujii, Yukiko Saito, Tatsuro Senga, 10 February 2018

Firms develop inter-firm networks throughout their lifecycles, continually adding and dropping trading partners. This column examines the role that the dynamics of these networks play in firm growth. The findings point to the importance of searching for potential trading partners and learning match-specific productivity for younger firms. Surviving older firms, in contrast, tend to enjoy a stable set of customers and suppliers to keep their operations.

Rüdiger Bachmann, Gabriel Ehrlich, Dimitrije Ruzic, 24 January 2018

There has been limited research on how groups’ collective reputations are affected by the misbehaviour of individual members. This column uses the Volkswagen emissions scandal as a natural experiment to explore group reputation externalities. German auto manufacturers that weren’t implicated in the scandal suffered significant declines in sales, stock returns, and public sentiment in the US. Volkswagen’s malfeasance appeared to materially harm the group reputation of German car engineering.

Emek Basker, Timothy S. Simcoe, 18 January 2018

ICT fuelled rapid growth in US retail during the 1990s and 2000s. This column maps the adoption of universal product codes and scanners to show that the barcode was one of the main drivers of this growth. Companies adopting barcodes employed 10% more employees, delivered a wider range of products, and were more likely to procure from abroad.

Kristian Behrens, Brahim Boualam, Julien Martin, 03 January 2018

Policymakers strive to encourage resilience among firms. We often assume that industry clustering creates resistance to shocks. This column uses the evidence from Chinese imports in the Canadian textile industry to show that firms in clusters were in fact no more resilient to the ‘China shock’.

Other Recent Articles:

Events