Statistical analysis of firm interdependence using duration data—parametric approach

Yuting Hsu, Qi Wang

Research output: Contribution to journalArticle

Abstract

A pioneer first enters the market as the monopolist and later experiences the competition when a similar product is brought to the market by the competitor. In 2012, Wang and Xie suggested to decompose the pioneer survival to “monopoly” and “competition” durations and estimate the two survivals of the pioneer individually with the competitor's survival via regression analysis. In their article, several regression analyses were performed to study the effect of order entry to the pioneer and the later entrant in different market status. Using the same datasets from their study, our main interest is to investigate the interdependent relationship between two competitive firms and study whether the market pioneer and the later entrant can benefit from the competition. The major contribution of this article is that the interdependence between two competitive firms is explicitly expressed and three survival durations can be estimated in one model. The proposed method relates the survival times of two competitive firms to pioneer's monopoly time and some observable covariates via proportional hazard model, and incorporates frailty variables to capture the interdependence in the competition. This article demonstrates a new method that formulates the interdependence between competitive firms and shows data analyses in the industries of newspapers and high technology.

Original languageEnglish (US)
Pages (from-to)1292-1301
Number of pages10
JournalCommunications in Statistics: Simulation and Computation
Volume46
Issue number2
DOIs
StatePublished - Feb 7 2017

Fingerprint

Statistical Analysis
Statistical methods
Frailty
Proportional Hazards Model
Survival Analysis
Survival Time
Regression Analysis
Regression analysis
Covariates
Hazards
Regression
Industry
Decompose
Business
Market
Estimate
Demonstrate
Model

All Science Journal Classification (ASJC) codes

  • Statistics and Probability
  • Modeling and Simulation

Cite this

@article{6b694e30def145ee9069b90ce61aad32,
title = "Statistical analysis of firm interdependence using duration data—parametric approach",
abstract = "A pioneer first enters the market as the monopolist and later experiences the competition when a similar product is brought to the market by the competitor. In 2012, Wang and Xie suggested to decompose the pioneer survival to “monopoly” and “competition” durations and estimate the two survivals of the pioneer individually with the competitor's survival via regression analysis. In their article, several regression analyses were performed to study the effect of order entry to the pioneer and the later entrant in different market status. Using the same datasets from their study, our main interest is to investigate the interdependent relationship between two competitive firms and study whether the market pioneer and the later entrant can benefit from the competition. The major contribution of this article is that the interdependence between two competitive firms is explicitly expressed and three survival durations can be estimated in one model. The proposed method relates the survival times of two competitive firms to pioneer's monopoly time and some observable covariates via proportional hazard model, and incorporates frailty variables to capture the interdependence in the competition. This article demonstrates a new method that formulates the interdependence between competitive firms and shows data analyses in the industries of newspapers and high technology.",
author = "Yuting Hsu and Qi Wang",
year = "2017",
month = "2",
day = "7",
doi = "10.1080/03610918.2014.999089",
language = "English (US)",
volume = "46",
pages = "1292--1301",
journal = "Communications in Statistics Part B: Simulation and Computation",
issn = "0361-0918",
publisher = "Taylor and Francis Ltd.",
number = "2",

}

Statistical analysis of firm interdependence using duration data—parametric approach. / Hsu, Yuting; Wang, Qi.

In: Communications in Statistics: Simulation and Computation, Vol. 46, No. 2, 07.02.2017, p. 1292-1301.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Statistical analysis of firm interdependence using duration data—parametric approach

AU - Hsu, Yuting

AU - Wang, Qi

PY - 2017/2/7

Y1 - 2017/2/7

N2 - A pioneer first enters the market as the monopolist and later experiences the competition when a similar product is brought to the market by the competitor. In 2012, Wang and Xie suggested to decompose the pioneer survival to “monopoly” and “competition” durations and estimate the two survivals of the pioneer individually with the competitor's survival via regression analysis. In their article, several regression analyses were performed to study the effect of order entry to the pioneer and the later entrant in different market status. Using the same datasets from their study, our main interest is to investigate the interdependent relationship between two competitive firms and study whether the market pioneer and the later entrant can benefit from the competition. The major contribution of this article is that the interdependence between two competitive firms is explicitly expressed and three survival durations can be estimated in one model. The proposed method relates the survival times of two competitive firms to pioneer's monopoly time and some observable covariates via proportional hazard model, and incorporates frailty variables to capture the interdependence in the competition. This article demonstrates a new method that formulates the interdependence between competitive firms and shows data analyses in the industries of newspapers and high technology.

AB - A pioneer first enters the market as the monopolist and later experiences the competition when a similar product is brought to the market by the competitor. In 2012, Wang and Xie suggested to decompose the pioneer survival to “monopoly” and “competition” durations and estimate the two survivals of the pioneer individually with the competitor's survival via regression analysis. In their article, several regression analyses were performed to study the effect of order entry to the pioneer and the later entrant in different market status. Using the same datasets from their study, our main interest is to investigate the interdependent relationship between two competitive firms and study whether the market pioneer and the later entrant can benefit from the competition. The major contribution of this article is that the interdependence between two competitive firms is explicitly expressed and three survival durations can be estimated in one model. The proposed method relates the survival times of two competitive firms to pioneer's monopoly time and some observable covariates via proportional hazard model, and incorporates frailty variables to capture the interdependence in the competition. This article demonstrates a new method that formulates the interdependence between competitive firms and shows data analyses in the industries of newspapers and high technology.

UR - http://www.scopus.com/inward/record.url?scp=84994837849&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84994837849&partnerID=8YFLogxK

U2 - 10.1080/03610918.2014.999089

DO - 10.1080/03610918.2014.999089

M3 - Article

AN - SCOPUS:84994837849

VL - 46

SP - 1292

EP - 1301

JO - Communications in Statistics Part B: Simulation and Computation

JF - Communications in Statistics Part B: Simulation and Computation

SN - 0361-0918

IS - 2

ER -