Home bias and market power: Evidence from the Chinese automobile industry
通过估计中国各省新车注册数据的均衡寡头模型，发现本土品牌需求弹性更大，但本地制造商有更强的偏好和成本优势，这限制了本土偏好的程度。忽略此效应会高估本土市场份额281%并夸大跨区域贸易壁垒。
Abstract We investigate the interaction between home bias and market power by estimating an equilibrium oligopoly model using a dataset of new car registrations across Chinese provinces. We find a more elastic demand for home brands on average, despite a consistently stronger preference and cost advantages for local manufacturers. This limits the extent of home bias. Ignoring such effect would lead to an overestimation of home market share by 281% and overstate the cross region trade barriers. We also find that home bias is gender neutral and increases with age.