Automation Capital Investment and Market Dominance

References

• Acemoglu D, Restrepo P (2020) Robots and jobs: Evidence from US labor markets. J. Political Econom. 128(6):2188–2244.Crossref, Google Scholar
• Acemoglu D, Lelarge C, Restrepo P (2020) Competing with robots: Firm-level evidence from France. AEA Papers Proc. 110:383–388.Crossref, Google Scholar
• Aghion P, Harris C, Howitt P, Vickers J (2001) Competition, imitation and growth with step-by-step innovation. Rev. Econom. Stud. 68(3):467–492.Crossref, Google Scholar
• Amir R (1996) Cournot oligopoly and the theory of supermodular games. Games Econom. Behav. 15(2):132–148.Crossref, Google Scholar
• Arrow KJ (1962) The economic implications of learning by doing. Rev. Econom. Stud. 29(3):155–173.Crossref, Google Scholar
• Asmussen CG (2015) Strategic factor markets, scale free resources, and economic performance: The impact of product market rivalry. Strategic Management J. 36(12):1826–1844.Crossref, Google Scholar
• Åstebro T (2002) Noncapital investment costs and the adoption of CAD and CNC in US metalworking industries. RAND J. Econom. 33(4):672–688.Crossref, Google Scholar
• Athey S, Schmutzler A (2001) Investment and market dominance. RAND J. Econom. 32(1):1–26.Crossref, Google Scholar
• Autor D, Salomons A (2018) Is automation labor-displacing? Productivity growth, employment, and the labor share. Brookings Papers Econom. Activity 2018(1):1–87.Google Scholar
• Autor D, Levy F, Murnane R (2003) The skill content of recent technological change: An empirical exploration. Quart. J. Econom. 118(4):1279–1333.Crossref, Google Scholar
• Autor D, Dorn D, Katz L, Patterson C, Van Reenen J (2020) The fall of the labor share and the rise of superstar firms. Quart. J. Econom. 135(2):645–709.Crossref, Google Scholar
• Barnatchez K, Crane LD, Decker RA (2017) An assessment of the National Establishment Time Series (NETS) database. FEDS, 2017-110. Board of Governors of the Federal Reserve System, Washington, DC .Google Scholar
• Bartel A, Ichniowski C, Shaw K (2007) How does information technology affect productivity? Plant-level comparisons of product innovation, process improvement, and worker skills. Quart. J. Econom. 122(4):1721–1758.Crossref, Google Scholar
• Beneito P, Coscollá-Girona P, Rochina-Barrachina ME, Sanchis A (2015) Competitive pressure and innovation at the firm level. J. Indust. Econom. 63(3):422–457.Crossref, Google Scholar
• Bennett VM (2020) Changes in persistence of performance over time. Strategic Management J. 41(10):1745–1769.Crossref, Google Scholar
• Bennett VM, Hall T (2020) Software availability and entry. Strategic Management J. 41(5):950–962.Crossref, Google Scholar
• Bennett VM, Black I, Hall T (2024) Market segment, organizational form, and information technology fit. Strategy Sci. 9(1):38–57.Link, Google Scholar
• Bessen J, Goos M, Solomons A, Van den Berge W (2020) Automatic reaction—What happens to workers at firms that automate? Boston University School of Law, Law and Economics Research Paper, Boston.Google Scholar
• Bresnahan TF (1992) Sutton’s sunk costs and market structure: Price competition, advertising, and the evolution of concentration. RAND J. Econom. 23(1):137–152.Crossref, Google Scholar
• Bresnahan TF, Reiss PC (1991) Entry and competition in concentrated markets. J. Political Econom. 99(5):977–1009.Crossref, Google Scholar
• Bresnahan TF, Brynjolfsson E, Hitt LM (2002) Information technology, workplace organization, and the demand for skilled labor: Firm-level evidence. Quart. J. Econom. 117(1):339–376.Crossref, Google Scholar
• Budd C, Harris C, Vickers J (1993) A model of the evolution of duopoly: Does the asymmetry between firms tend to increase or decrease? Rev. Econom. Stud. 60(3):543–573.Crossref, Google Scholar
• Cabral L (2002) Increasing dominance with no efficiency effect. J. Econom. Theory 102(2):471–479.Crossref, Google Scholar
• Cabral LMB, Riordan MH (1994) The learning curve, market dominance, and predatory pricing. Econometrica 62(5):1115–1140.Crossref, Google Scholar
• Caceres M (2018) GTOOLS: Stata module to provide a fast implementation of common group commands. Statistical Software Components S458514, Boston College Department of Economics, revised 05 Dec 2022.Google Scholar
• Ceccagnoli M (2005) Firm heterogeneity, imitation, and the incentives for cost reducing R&D effort. J. Indust. Econom. 53(1):83–100.Crossref, Google Scholar
• Chirinko RS, Mallick D (2017) The substitution elasticity, factor shares, and the low-frequency panel model. Amer. Econom. J. Macroeconomics 9(4):225–253.Crossref, Google Scholar
• Cohen WM, Klepper S (1996) Firm size and the nature of innovation within industries: The case of process and product R&D. Rev. Econom. Statist. 78(2):232–243.Crossref, Google Scholar
• Correia S, Guimarães P, Zylkin T (2020) Fast poisson estimation with high-dimensional fixed effects. Stata J. Promoting Comm. Statist. Stata 20(1):95–115.Google Scholar
• Crane LD, Decker RA (2020) Research with private sector business microdata: The case of NETS/D&B. Federal Reserve Board working paper, Washington, DC.Google Scholar
• Davis P (2006) Estimation of quantity games in the presence of indivisibilities and heterogeneous firms. J. Econometrics 134(1):187–214.Crossref, Google Scholar
• Delaney KJ (2017) Bill Gates: This is why we should tax robots. Accessed March 12, 2025, https://www.weforum.org/stories/2017/02/bill-gates-this-is-why-we-should-tax-robots/.Google Scholar
• De Loecker J, Eeckhout J, Unger G (2020) The rise of market power and the macroeconomic implications. Quart. J. Econom. 135(2):561–644.Crossref, Google Scholar
• Dierickx I, Cool K (1989) Asset stock accumulation and sustainability of competitive advantage. Management Sci. 35(12):1504–1511.Link, Google Scholar
• Dixon J, Hong B, Wu L (2021) The robot revolution: Managerial and employment consequences for firms. Management Sci. 67(9):5586–5605.Link, Google Scholar
• Echeverri-Carroll EL, Feldman MP (2019) Chasing entrepreneurial firms. Indust. Innovation 26(5):479–507.Crossref, Google Scholar
• Felten EW, Raj M, Seamans RC (2018) A method to link advances in artificial intelligence to occupational abilities. AEA Papers Proc. 108:54–57.Crossref, Google Scholar
• Flaherty MT (1980) Industry structure and cost-reducing investment. Econometrica 48(5):1187–1209.Crossref, Google Scholar
• Forman C, McElheran K (2025) Production chain organization in the digital age: Information technology use and vertical integration in US manufacturing. Management Sci. 71(2):1027–1049.Link, Google Scholar
• Gervais A, Jensen JB (2019) The tradability of services: Geographic concentration and trade costs. J. Internat. Econom. 118:331–350.Crossref, Google Scholar
• Graetz G, Michaels G (2018) Robots at work. Rev. Econom. Statist. 100(5):753–768.Crossref, Google Scholar
• Gutiérrez G, Philippon T (2017) Declining competition and investment in the US. NBER Working Paper No. 23583, National Bureau of Economic Research, Cambridge, MA.Google Scholar
• Haltiwanger J, Jarmin RS, Miranda J (2013) Who creates jobs? Small versus large versus young. Rev. Econom. Statist. 95(2):347–361.Crossref, Google Scholar
• Humlum A (2020) Robot adoption and labor market dynamics. Working paper, Princeton University, Princeton, NJ.Google Scholar
• Hummels D (2007) Transportation costs and international trade in the second era of globalization. J. Econom. Perspect. 21(3):131–154.Crossref, Google Scholar
• Karshenas M, Stoneman PL (1993) Rank, stock, order, and epidemic effects in the diffusion of new process technologies: An empirical model. RAND J. Econom. 24(4):503–528.Crossref, Google Scholar
• Klepper S (1996) Entry, exit, growth, and innovation over the product life cycle. Amer. Econom. Rev. 86(3):562–583.Google Scholar
• Koch M, Manuylov I, Smolka M (2021) Robots and firms. Econom. J. 131(638):2553–2584.Google Scholar
• Kothari SP, Laguerre TE, Leone AJ (2002) Capitalization versus expensing: Evidence on the uncertainty of future earnings from capital expenditures versus R&D outlays. Rev. Accounting Stud. 7(4):355–382.Crossref, Google Scholar
• Levinthal DA, Wu B (2010) Opportunity costs and non-scale free capabilities: Profit maximization, corporate scope, and profit margins. Strategic Management J. 31(7):780–801.Crossref, Google Scholar
• Liu E, Mian A, Sufi A (2022) Low interest rates, market power, and productivity growth. Econometrica 90(1):193–221.Crossref, Google Scholar
• Lovins JB (1968) Development of a stemming algorithm. Mech. Translation Comput. Linguistics 11(1–2):22–31.Google Scholar
• Makadok R (2010) The interaction effect of rivalry restraint and competitive advantage on profit: Why the whole is less than the sum of the parts. Management Sci. 56(2):356–372.Link, Google Scholar
• Mann K, Püttmann L (2023) Benign effects of automation: New evidence from patent texts. Rev. Econom. Statist. 105(3):562–579.Crossref, Google Scholar
• McElheran K (2015) Do market leaders lead in business process innovation? The case(s) of e-business adoption. Management Sci. 61(6):1197–1216.Link, Google Scholar
• Medeiros G, Howells T III (2017) Introducing domestic requirements tables for 1997–2015. Survey Current Bus. 1–6.Google Scholar
• Nelson RR, Winter S (1982) An Evolutionary Theory of Economic Change (Harvard University Press, Cambridge, MA).Google Scholar
• Neumark D, Wall B, Zhang J (2011) Do small businesses create more jobs? New evidence for the United States from the National Establishment Time Series. Rev. Econom. Statist. 93(1):16–29.Crossref, Google Scholar
• Neumark D, Zhang J, Wall B (2007) Employment dynamics and business relocation: New evidence from the National Establishment Time Series. Aspects of Worker Well-Beingresearch in Labor Economics, vol. 26 (Emerald Group Publishing Limited, Bingley, UK), 39–83Crossref, Google Scholar
• Pacheco de Almeida G, Zemsky P (2007) The timing of resource development and sustainable competitive advantage. Management Sci. 53(4):651–666.Link, Google Scholar
• Peteraf MA (1993) The cornerstones of competitive advantage: A resource-based view. Strategic Management J. 14(3):179–191.Crossref, Google Scholar
• Pierce JR, Schott PK (2012) A concordance between ten-digit US harmonized system codes and SIC/NAICS product classes and industries. J. Econom. Soc. Measurement 37(1–2):61–96.Crossref, Google Scholar
• Postrel S (2018) Transaction surplus superiority in canonical market segments: Using the profit map to guide positioning and investment choices across price-rivalry regimes. Strategic Management J. 39(6):1573–1602.Crossref, Google Scholar
• Rossi-Hansberg E, Sarte P-D, Trachter N (2021) Diverging trends in national and local concentration. Eichenbaum M, Hurst E, eds. NBER Macroeconomics Annual, vol. 35 (University of Chicago Press, Chicago), 115–150. Crossref, Google Scholar
• Shapiro C (2018) Antitrust in a time of populism. Internat. J. Indust. Organ. 61:714–748.Crossref, Google Scholar
• Shapiro C, Yurukoglu A (2026) Trends in competition in the United States: What does the evidence show? J. Political Econom. Microeconomics 4(1).Crossref, Google Scholar
• Sutton J (1991) Sunk Costs and Market Structure. Price Competition, Advertising, and the Evolution of Concentration (MIT Press, Cambridge, MA).Google Scholar
• Syverson C (2004) Market structure and productivity: A concrete example. J. Political Econom. 112(6):1181–1222.Crossref, Google Scholar
• Syverson C (2019) Macroeconomics and market power: Context, implications, and open questions. J. Econom. Perspect. 33(3):23–43.Crossref, Google Scholar
• Thompson P (2012) The relationship between unit cost and cumulative quantity and the evidence for organizational learning-by-doing. J. Econom. Perspect. 26(3):203–224.Crossref, Google Scholar
• Van Reenen J (2018) Increasing differences between firms: Market power and the macro-economy. Working paper, Massachusetts Institute of Technology, Cambridge, MA.Google Scholar
• Vega Yon GG, Quistorff B (2019) parallel: A command for parallel computing. Stata J. 19(3):667–684.Crossref, Google Scholar
• Vives X (2008) Innovation and competitive pressure. J. Indust. Econom. 56(3):419–469.Crossref, Google Scholar
• Webb M (2019) The impact of artificial intelligence on the labor market. Preprint, submitted November 15, 2019, https://doi.org/10.2139/ssrn.3482150.Google Scholar
• Wibbens PD (2019) Performance persistence in the presence of higher-order resources. Strategic Management J. 40(2):181–202.Crossref, Google Scholar
• Wibbens PD (2021) The role of competitive amplification in explaining sustained performance heterogeneity. Strategic Management J. 42(10):1769–1792.Crossref, Google Scholar
• Wibbens PD (2023) A formal framework for the RBV: Resource dynamics as a Markov process. Strategic Management J. 44(6):1562–1586.Crossref, Google Scholar
• World Bank (2024) World Development Indicators (The World Bank Group, Washington, DC).Google Scholar
• Zolas N, Kroff Z, Brynjolfsson E, McElheran K, Beede DN, Buffington C, Goldschlag N, Foster L, Dinlersoz E (2020) Advanced technologies adoption and use by U.S. firms: Evidence from the Annual Business Survey. NBER Working Paper No. 28290, National Bureau of Economic Research, Cambridge, MA.Google Scholar