Publications and working papers:
Most recent project:
Automation and Market Dominance [December 2020 version]
Does the availability of new process technologies—like automation—reinforce the lead of dominant firms, or the opposite? Using novel plant-level data on automation, I show patterns consistent with endogenous automation adoption reducing market-leader share on average; particularly so in the most concentrated markets and when markets are not growing. I propose that whether leaders or laggards have more incentive to invest in the new technology depends on the balance of two effects: a cost-spreading effect and a market-stealing effect. In growing markets, the cost spreading effect dominates and process improvements entrench leaders. In more “zero-sum” markets, laggards’ incentives to adopt are greater and automation becomes a force for market parity.