Robert Feinberg - Academia.edu (original) (raw)
Papers by Robert Feinberg
Minority groups are under-represented in university teaching and research positions; they are emp... more Minority groups are under-represented in university teaching and research positions; they are employed in these positions at lower rates than would be indicated by college enrollments
Review of Regional Studies, 1987
A rather large body of recent literature has explored the implications of various conjectural var... more A rather large body of recent literature has explored the implications of various conjectural variations in spatial pricing models. Very different conclusions have been reached as to which conjecture is appropriate for spatial modeling. The purpose of this paper is to add to this debate through application to a spatial model of two sets of arguments which stress that entrepreneurs learn.
Theoretical work starting with Stigler (1964) suggests that collusion may be difficult to sustain... more Theoretical work starting with Stigler (1964) suggests that collusion may be difficult to sustain in a repeated game with secret price cuts and demand uncertainty. Compared to equilibria in games of perfect information, trigger−strategy equilibria in this context result in lower payoffs because punishments occur along the equilibrium path. We tested the theory in a series of economic experiments. Consistent with the theory, treatments with imperfect information were less collusive than treatments with perfect information. However, in the imperfect−information treatments, players seemed to settle on the static Nash outcome rather than using trigger strategies. Players did resort to punishments for undercutting in perfect−information treatments, and this sometimes led to successful collusion afterward. We would like to thank Sabine Bendanoun, Yvon Pho, and Tad Reynolds for research assistance and Doug Davis, Tom Husted, and Roger Sherman for helpful comments. Financial support was provided by a grant from the College of the Arts and Sciences at American University. Views expressed are those of the authors alone.
The Review of Economics and Statistics, 1977
A jobseeker's attitudes towards risk and his perception of the risk inherent in the labor mar... more A jobseeker's attitudes towards risk and his perception of the risk inherent in the labor market he is searching have been shown to have a theoretical effect on his expected duration of search, when he is assumed to be searching for jobs in an optimal fashion.' However, no empirical research has adequately tested for these predicted effects.2 This article presents estimates of a reduced-form equation derived from the job search theory3 and tests the following two hypotheses: (1) as the standard deviation of the distribution of potential wage offers increases, an individual's expected duration of unemployment will increase, ceteris pariblis; (2) an individual who is more risk averse than another will have a shorter expected duration of unemployment, ceteris paribbls. The empirical results presented here tend to support both of these hypotheses. Both Kohn and Shavell (1974) and Pissarides (1974) prove, within models of optimal job search, that the more risk averse a job seeker, the lower he will set his minimum acceptable, or reservation, wage. The reservation wage is set to equate the marginal cost of an additional period of search with the expected marginal return from search; any job offer exceeding this wage is accepted and unemployment terminates.4 Determinants of the individual's reservation wage include costs of search, his risk preferences, and his view of the distribution of possible wage offers facing him. As an individual lowers his minimum acceptable wage he will shorten his expected spell of unemployment, given that the distribution of wage offers from which he draws is unchanged. Hence, the more risk averse jobseeker, by lowering his reservation wage, will have to search a shorter period of time, on average, to find an offer acceptable to him. The effect of wage dispersion on duration of unemployment (allowing for adjustment in the reservation wage) cannot be predicted in general from models of job search, despite the belief expressed (from Stigler (1962, p. 236) to Hall (1975, p. 324)) that this effect should be positive. However, when a rectangular wage offer distribution is posited, the intuitively appealing hypothesis (1) can be obtained from a static model of job search (for example, McCall's model (1970)). While the regression specification used in this study to test the two implications presented above was developed in the context of the job search theory, alternative theories could produce these results; hence, the empirical work discussed here is not seen as a test of the search theory.5 Instead, a negative relationship between risk aversion and duration of unemployment could reflect a tendency for individuals to choose occupations and industries with patterns of employment suiting their risk preferences. And a positive association between dispersion in potential wages and duration may
The Journal of Industrial Economics, 1993
Game theory suggests that the ability to sustain collusive equilibria in duopoly markets depends ... more Game theory suggests that the ability to sustain collusive equilibria in duopoly markets depends on sufficiently low rates of time preference. This proposition has never been subjected to experimental test, possibly because of the difficulty of inducing collusive behavior in experimental ...
Review of Industrial Organization, 2008
ABSTRACT
Review of Industrial Organization, 1994
In this paper we combine data on industry entry, imports, and producer price indexes for 46 4-dig... more In this paper we combine data on industry entry, imports, and producer price indexes for 46 4-digit SIC industries over the 1972 to 1987 period to determine the impact of entry on industry pricing. Domestic entry's restraining influence is weak and occurs only at high levels of concentration while import changes exhibit a procompetitive influence for lower levels of concentration that include nearly all industries in the sample. In addition, the threat of foreign entry plays a role in disciplining domestic pricing; the impact of nontariff barriers on price changes seems to increase with concentration levels.
Post-Communist Economies, 2005
... 3. As noted by Earle & Estrin, 1998; Konings, 1997. View all notes. . Feinberg &a... more ... 3. As noted by Earle & Estrin, 1998; Konings, 1997. View all notes. . Feinberg & Meurs (200514. Feinberg, Robert M and Meurs, Mieke. 2005. Exchange Rate Effects on Domestic Prices in Bulgaria and Poland: Progress in Making Markets?. ...
Journal of Economics and Business, 1984
... 2-82-1, The Pennsylvania State University, Department of Economics (1982). Gelfand and Spille... more ... 2-82-1, The Pennsylvania State University, Department of Economics (1982). Gelfand and Spiller, Dec. 1982. Matthew Gelfand and Pablo T. Spiller , Testing oligopolistic interactions among multiproduct firms. , University of Pennsylvania (Dec. 1982) unpublished . Scott, 1979. ...
International Journal of the Economics of Business, 1999
... Figure 1. Payoff matrix from Feinberg and Husted (1993). ... Therefore, to judge the robustne... more ... Figure 1. Payoff matrix from Feinberg and Husted (1993). ... Therefore, to judge the robustness of results based on the earlier experiments at American University, another session was conducted at the University of Limerick (in Ireland), with a smaller number of participants (six ...
Economics Letters, 2014
Movie theater chains are ubiquitous in major metropolitan areas of the U.S., with generally two o... more Movie theater chains are ubiquitous in major metropolitan areas of the U.S., with generally two or more of these large chains present. However in smaller metropolitan areas, we see far more variation in the role of these chains. This allows for an opportunity to see whether multimarket contact (MMC) among these firms has an impact on movie pricing in these smaller markets. In this paper, data on movie pricing, market structure, and income and population characteristics are obtained for 79 small metropolitan areas-those with under 250,000 people-which are not part of larger "consolidated" metropolitan areas. A crude measure of MMC is found to indeed be related to price increases in the smallest of these markets.
Economics Letters, 2001
This article investigates the relationship between banks and credit unions using the Granger-caus... more This article investigates the relationship between banks and credit unions using the Granger-causality technique. For two types of consumer loans in 33 local markets in the US both credit union and bank loan rates are found to cause the other.
In our increasingly globalized economy, the growth and profit prospects of domestic firms, especi... more In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for 86 4-digit NAICS industries on establishment-plant-level-births by small firms in several size categories. The major finding is that international pressures, in the form of import share weighted exchange rate appreciation, seem to lead to reduced rates of smallest-firm entry in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed (and there is the suggestion that dollar appreciation may actually benefit small firm entry through access to cheaper inputs where the final product import threat is weak).
In our increasingly globalized economy, the growth and profit prospects of domestic firms, especi... more In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for 86 4-digit NAICS industries on establishment-plant-level-births by small firms in several size categories. The major finding is that international pressures, in the form of import share weighted exchange rate appreciation, seem to lead to reduced rates of smallest-firm entry in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed (and there is the suggestion that dollar appreciation may actually benefit small firm entry through access to cheaper inputs where the final product import threat is weak).
The B.E. Journal of Economic Analysis & Policy, 2015
In recent years, the role of multimarket contact (MMC) among firms in influencing market performa... more In recent years, the role of multimarket contact (MMC) among firms in influencing market performance has been studied for a relatively small group of industries – with banking and airlines most often examined, though the cement and telecommunications industries have been studied as well. This paper investigates this issue for the local movie theater industry in the U.S., one not previously studied in this regard. In small U.S. metropolitan areas, there is considerable variation in the nature of MMC among theater chains (large and small), which allows us to examine whether MMC among firms has an impact on movie pricing in these smaller markets. Data on movie pricing, market structure, and income and population characteristics are obtained for 118 multi-screen first-run movie theaters in 79 small metropolitan areas – those with under 250,000 people – which are not part of larger “consolidated” metropolitan areas. Analysis provides evidence supportive of MMC effects but suggestive of i...
Review of Industrial Organization, 2014
Title charges are costs that are related to establishing and insuring title in a real estate tran... more Title charges are costs that are related to establishing and insuring title in a real estate transaction. These charges vary considerably and include title insurance premiums and other fees involved in closing a mortgage loan. This study analyzes the variation in title charges using data from almost 3,000 FHA-insured, 30-year fixed-rate home purchase loans in five metropolitan areas. Even after controlling for cost-related and other characteristics, more than one-half of the variation in title charges remains unexplained in four of the five markets. Substantial differences in charges between settlement agents suggest that consumers would benefit by shopping for settlement services.
Review of World Economics, 2005
... that statutory provisions and case-specific factors were what Commerce and the ITC would exam... more ... that statutory provisions and case-specific factors were what Commerce and the ITC would examine, so that macroeconomic indicators would have little ... to use a but-for (or economic causality) approach, the dominant approach since has focused on industry trends, and both ...
International Journal of the Economics of Business, 2008
In previous work (Feinberg and Round, 2005), little evidence of share-price response to Australia... more In previous work (Feinberg and Round, 2005), little evidence of share-price response to Australian price-fixing investigations was found. However, these investigations often involve a small part of a company's operations and antitrust penalties have tended to be relatively small; in fact, some weak support was found for a greater response by investors when penalties were expected to be more significant. Mergers, on the other hand, clearly represent a much more significant event, and we would anticipate a clearer share-price response both to announced mergers and to associated antitrust challenges. While such studies have been done in other countries (primarily for the US), we know of no prior research of this sort for Australia. In this paper we focus on a sample of about 50 mergers and acquisitions involving Australian companies from 1996-2003, examining the impact on share prices of the announcement of these mergers both on the firms involved and on rival firms. For those which were challenged by the Australian antitrust enforcers, we also consider the impact of the announcement of such a challenge.
Minority groups are under-represented in university teaching and research positions; they are emp... more Minority groups are under-represented in university teaching and research positions; they are employed in these positions at lower rates than would be indicated by college enrollments
Review of Regional Studies, 1987
A rather large body of recent literature has explored the implications of various conjectural var... more A rather large body of recent literature has explored the implications of various conjectural variations in spatial pricing models. Very different conclusions have been reached as to which conjecture is appropriate for spatial modeling. The purpose of this paper is to add to this debate through application to a spatial model of two sets of arguments which stress that entrepreneurs learn.
Theoretical work starting with Stigler (1964) suggests that collusion may be difficult to sustain... more Theoretical work starting with Stigler (1964) suggests that collusion may be difficult to sustain in a repeated game with secret price cuts and demand uncertainty. Compared to equilibria in games of perfect information, trigger−strategy equilibria in this context result in lower payoffs because punishments occur along the equilibrium path. We tested the theory in a series of economic experiments. Consistent with the theory, treatments with imperfect information were less collusive than treatments with perfect information. However, in the imperfect−information treatments, players seemed to settle on the static Nash outcome rather than using trigger strategies. Players did resort to punishments for undercutting in perfect−information treatments, and this sometimes led to successful collusion afterward. We would like to thank Sabine Bendanoun, Yvon Pho, and Tad Reynolds for research assistance and Doug Davis, Tom Husted, and Roger Sherman for helpful comments. Financial support was provided by a grant from the College of the Arts and Sciences at American University. Views expressed are those of the authors alone.
The Review of Economics and Statistics, 1977
A jobseeker's attitudes towards risk and his perception of the risk inherent in the labor mar... more A jobseeker's attitudes towards risk and his perception of the risk inherent in the labor market he is searching have been shown to have a theoretical effect on his expected duration of search, when he is assumed to be searching for jobs in an optimal fashion.' However, no empirical research has adequately tested for these predicted effects.2 This article presents estimates of a reduced-form equation derived from the job search theory3 and tests the following two hypotheses: (1) as the standard deviation of the distribution of potential wage offers increases, an individual's expected duration of unemployment will increase, ceteris pariblis; (2) an individual who is more risk averse than another will have a shorter expected duration of unemployment, ceteris paribbls. The empirical results presented here tend to support both of these hypotheses. Both Kohn and Shavell (1974) and Pissarides (1974) prove, within models of optimal job search, that the more risk averse a job seeker, the lower he will set his minimum acceptable, or reservation, wage. The reservation wage is set to equate the marginal cost of an additional period of search with the expected marginal return from search; any job offer exceeding this wage is accepted and unemployment terminates.4 Determinants of the individual's reservation wage include costs of search, his risk preferences, and his view of the distribution of possible wage offers facing him. As an individual lowers his minimum acceptable wage he will shorten his expected spell of unemployment, given that the distribution of wage offers from which he draws is unchanged. Hence, the more risk averse jobseeker, by lowering his reservation wage, will have to search a shorter period of time, on average, to find an offer acceptable to him. The effect of wage dispersion on duration of unemployment (allowing for adjustment in the reservation wage) cannot be predicted in general from models of job search, despite the belief expressed (from Stigler (1962, p. 236) to Hall (1975, p. 324)) that this effect should be positive. However, when a rectangular wage offer distribution is posited, the intuitively appealing hypothesis (1) can be obtained from a static model of job search (for example, McCall's model (1970)). While the regression specification used in this study to test the two implications presented above was developed in the context of the job search theory, alternative theories could produce these results; hence, the empirical work discussed here is not seen as a test of the search theory.5 Instead, a negative relationship between risk aversion and duration of unemployment could reflect a tendency for individuals to choose occupations and industries with patterns of employment suiting their risk preferences. And a positive association between dispersion in potential wages and duration may
The Journal of Industrial Economics, 1993
Game theory suggests that the ability to sustain collusive equilibria in duopoly markets depends ... more Game theory suggests that the ability to sustain collusive equilibria in duopoly markets depends on sufficiently low rates of time preference. This proposition has never been subjected to experimental test, possibly because of the difficulty of inducing collusive behavior in experimental ...
Review of Industrial Organization, 2008
ABSTRACT
Review of Industrial Organization, 1994
In this paper we combine data on industry entry, imports, and producer price indexes for 46 4-dig... more In this paper we combine data on industry entry, imports, and producer price indexes for 46 4-digit SIC industries over the 1972 to 1987 period to determine the impact of entry on industry pricing. Domestic entry's restraining influence is weak and occurs only at high levels of concentration while import changes exhibit a procompetitive influence for lower levels of concentration that include nearly all industries in the sample. In addition, the threat of foreign entry plays a role in disciplining domestic pricing; the impact of nontariff barriers on price changes seems to increase with concentration levels.
Post-Communist Economies, 2005
... 3. As noted by Earle & Estrin, 1998; Konings, 1997. View all notes. . Feinberg &a... more ... 3. As noted by Earle & Estrin, 1998; Konings, 1997. View all notes. . Feinberg & Meurs (200514. Feinberg, Robert M and Meurs, Mieke. 2005. Exchange Rate Effects on Domestic Prices in Bulgaria and Poland: Progress in Making Markets?. ...
Journal of Economics and Business, 1984
... 2-82-1, The Pennsylvania State University, Department of Economics (1982). Gelfand and Spille... more ... 2-82-1, The Pennsylvania State University, Department of Economics (1982). Gelfand and Spiller, Dec. 1982. Matthew Gelfand and Pablo T. Spiller , Testing oligopolistic interactions among multiproduct firms. , University of Pennsylvania (Dec. 1982) unpublished . Scott, 1979. ...
International Journal of the Economics of Business, 1999
... Figure 1. Payoff matrix from Feinberg and Husted (1993). ... Therefore, to judge the robustne... more ... Figure 1. Payoff matrix from Feinberg and Husted (1993). ... Therefore, to judge the robustness of results based on the earlier experiments at American University, another session was conducted at the University of Limerick (in Ireland), with a smaller number of participants (six ...
Economics Letters, 2014
Movie theater chains are ubiquitous in major metropolitan areas of the U.S., with generally two o... more Movie theater chains are ubiquitous in major metropolitan areas of the U.S., with generally two or more of these large chains present. However in smaller metropolitan areas, we see far more variation in the role of these chains. This allows for an opportunity to see whether multimarket contact (MMC) among these firms has an impact on movie pricing in these smaller markets. In this paper, data on movie pricing, market structure, and income and population characteristics are obtained for 79 small metropolitan areas-those with under 250,000 people-which are not part of larger "consolidated" metropolitan areas. A crude measure of MMC is found to indeed be related to price increases in the smallest of these markets.
Economics Letters, 2001
This article investigates the relationship between banks and credit unions using the Granger-caus... more This article investigates the relationship between banks and credit unions using the Granger-causality technique. For two types of consumer loans in 33 local markets in the US both credit union and bank loan rates are found to cause the other.
In our increasingly globalized economy, the growth and profit prospects of domestic firms, especi... more In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for 86 4-digit NAICS industries on establishment-plant-level-births by small firms in several size categories. The major finding is that international pressures, in the form of import share weighted exchange rate appreciation, seem to lead to reduced rates of smallest-firm entry in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed (and there is the suggestion that dollar appreciation may actually benefit small firm entry through access to cheaper inputs where the final product import threat is weak).
In our increasingly globalized economy, the growth and profit prospects of domestic firms, especi... more In our increasingly globalized economy, the growth and profit prospects of domestic firms, especially small firms, seem clearly impacted by competitive pressures from foreign firms. This article analyzes annual data for 1989-1998 for 140 3-digit SIC manufacturing industries and for 1998-2004 for 86 4-digit NAICS industries on establishment-plant-level-births by small firms in several size categories. The major finding is that international pressures, in the form of import share weighted exchange rate appreciation, seem to lead to reduced rates of smallest-firm entry in manufacturing, though the magnitudes of these effects are smaller than sometimes discussed (and there is the suggestion that dollar appreciation may actually benefit small firm entry through access to cheaper inputs where the final product import threat is weak).
The B.E. Journal of Economic Analysis & Policy, 2015
In recent years, the role of multimarket contact (MMC) among firms in influencing market performa... more In recent years, the role of multimarket contact (MMC) among firms in influencing market performance has been studied for a relatively small group of industries – with banking and airlines most often examined, though the cement and telecommunications industries have been studied as well. This paper investigates this issue for the local movie theater industry in the U.S., one not previously studied in this regard. In small U.S. metropolitan areas, there is considerable variation in the nature of MMC among theater chains (large and small), which allows us to examine whether MMC among firms has an impact on movie pricing in these smaller markets. Data on movie pricing, market structure, and income and population characteristics are obtained for 118 multi-screen first-run movie theaters in 79 small metropolitan areas – those with under 250,000 people – which are not part of larger “consolidated” metropolitan areas. Analysis provides evidence supportive of MMC effects but suggestive of i...
Review of Industrial Organization, 2014
Title charges are costs that are related to establishing and insuring title in a real estate tran... more Title charges are costs that are related to establishing and insuring title in a real estate transaction. These charges vary considerably and include title insurance premiums and other fees involved in closing a mortgage loan. This study analyzes the variation in title charges using data from almost 3,000 FHA-insured, 30-year fixed-rate home purchase loans in five metropolitan areas. Even after controlling for cost-related and other characteristics, more than one-half of the variation in title charges remains unexplained in four of the five markets. Substantial differences in charges between settlement agents suggest that consumers would benefit by shopping for settlement services.
Review of World Economics, 2005
... that statutory provisions and case-specific factors were what Commerce and the ITC would exam... more ... that statutory provisions and case-specific factors were what Commerce and the ITC would examine, so that macroeconomic indicators would have little ... to use a but-for (or economic causality) approach, the dominant approach since has focused on industry trends, and both ...
International Journal of the Economics of Business, 2008
In previous work (Feinberg and Round, 2005), little evidence of share-price response to Australia... more In previous work (Feinberg and Round, 2005), little evidence of share-price response to Australian price-fixing investigations was found. However, these investigations often involve a small part of a company's operations and antitrust penalties have tended to be relatively small; in fact, some weak support was found for a greater response by investors when penalties were expected to be more significant. Mergers, on the other hand, clearly represent a much more significant event, and we would anticipate a clearer share-price response both to announced mergers and to associated antitrust challenges. While such studies have been done in other countries (primarily for the US), we know of no prior research of this sort for Australia. In this paper we focus on a sample of about 50 mergers and acquisitions involving Australian companies from 1996-2003, examining the impact on share prices of the announcement of these mergers both on the firms involved and on rival firms. For those which were challenged by the Australian antitrust enforcers, we also consider the impact of the announcement of such a challenge.