The Fog of War: Russia’s War on Ukraine,European Defence Spending and Military Capabilities

Intereconomics - Some … may look at the depleted nature of Russia’s military after its invasion of Ukraine and incorrectly surmise that defence spending increases are not that necessary...     

Electoral uncertainty and financial volatility: Evidence from two‐round presidential races in emerging markets

We study how the predictability and the decisiveness of electoral outcomes affect financial volatility. We argue that traders’ optimal investment strategies depend on their ability to make accurate electoral forecasts and the prospective losses associated with placing a bet on the wrong candidate. Using a triple difference‐in‐difference approach and data from two‐round presidential elections in five Latin American countries between 1999 and 2018, we find that financial volatility is greatest in the days immediately following unpredictable, decisive, elections. Postelectoral volatility also occurs following predictable, indecisive elections. The effect of learning the identity of the winning candidate on financial volatility is null when the election is unpredictable and indecisive, as well as when the election is decisive, but the outcome is predictable. These findings offer insights into investors seeking to hedge price risk around elections. They also have important implications regarding the relationship between public opinion polls and postelectoral financial volatility.     

Do retail mergers affect competition? Evidence from grocery retailing

This study estimates the price effects of horizontal mergers in the U.S. grocery retailing industry. We examine fourteen regions affected by mergers, including mergers in highly concentrated and relatively unconcentrated markets. We identify price effects by comparing markets affected by mergers to unaffected markets using difference‐in‐difference estimation with three different comparison groups, propensity score weights, and by using the synthetic control method. Our results are robust to the choice of control group and estimation technique. We find that mergers in highly concentrated markets are most frequently associated with price increases, and mergers in less concentrated markets are most often associated with price decreases.     

Variety in the video game industry: An empirical study of the Wundt curve

This study analyzes the effect of variety on consumer utility using historical behavioral information for 1,397 consumers participating in 729,049 unique rounds of play. We show that consumers generally exhibit a preference for variety as part of their gameplay utility. The relationship between variety and utility is nonlinear and follows, at least for some types of variety, an inverted u‐shape as predicted by the Wundt curve. Our results represent the first such evidence on the importance of variety in video gaming, which has significant implications for consumption through optimization of gameplay utility to satisfy the demand for variety.     

Reviewing the Field of External Knowledge Search for Innovation: Theoretical Underpinnings and Future (Re-)search Directions

The field of external knowledge search for innovation has a long tradition and has inspired several schools of thought resulting in a rich and burgeoning body of research. However, the field suffers from two key limitations. First, the pluralism of research across multiple disciplines impedes our attention to the field as a whole, including its intellectual structure and core ideas. Second, recent developments in the business environment and key new ideas in the field complement taken-for-granted approaches and provide new opportunities for knowledge search. Based on a systematic co-citation analysis, we provide a reflective review of the literature and make several contributions. We integrate existing research across disciplines and offer a synthesis of a fragmented research landscape to present a global view of the field. Moreover, we propose a novel external search concept and introduce the idea of “decoupled search.” Leveraging our synthesis and conceptualization further, we recommend future research directions for the entire field of external knowledge search for innovation.     

Aggregative games and oligopoly theory: short-run and long-run analysis

We compile an IO toolkit for aggregative games with positive and normative comparative statics results for asymmetric oligopoly in the short and long run. We characterize the class of aggregative Bertrand and Cournot oligopoly games, and the subset for which the aggregate is a summary statistic for consumer welfare. We close the model with a monopolistically competitive fringe for long-run analysis. Remarkably, we show strong neutrality properties in the long run across a wide range of market structures. The results elucidate aggregative games as a unifying principle in the literature on merger analysis, privatization, Stackelberg leadership, and cost shocks.     

Assessment Regressivity and Property Taxation

The Journal of Real Estate Finance and Economics - Homestead exemptions typically produce a moderately progressive statutory incidence for the property tax in the US when progressivity is measured...     

New Perspectives on Real Estate Valuation

The Journal of Real Estate Finance and Economics -     

Understanding the Limitations of Maastricht

Intereconomics - “The unspoken, implicit assumption was that financial instability can only arise alongside inflation and that the stability of financial markets should remain a national...     

“I will survive”: Online streaming and the chart survival of music tracks

Digital streaming has had a profound effect on the commercial music sector and now accounts for 80% of industry revenues in the United States. This study investigates the consumption of music on digital streaming platforms by analyzing the factors affecting the chart survival of individual music tracks. Our data are taken from the Spotify Global Top 200 between January 2017 and January 2020, containing observations on 3,007 unique tracks by 642 artists over 1,087 days. We identify a number of unique consumption traits applicable to online streaming services, which we use to explain variations in chart longevity. We find a positive association between the amount of time a track spends in the chart and the involvement of a major label. We also find that the level of competition from other chart entries, as well as some elements related to the pattern of diffusion, associates significantly with the likelihood of chart survival. The study highlights several important managerial implications for key industry stakeholders.