Arbeitspapier
Learning and Information Transmission within Multinational Corporations
We propose that multinational firms learn about their profitability in a particular market by observing their performance in nearby markets. We first develop a model of firm expectations formation with noisy signals from multiple markets and derive predictions on expectations formation and market entries. Using a dataset of Japanese multinational corporations that includes sales expectations of each affiliate, we provide evidence supporting the model’s predictions. We find that a positive signal about demand inferred from nearby markets raises the probability of entry into a new market, or raises the firm’s sales expectation in an existing (focal) market. The latter effect is stronger when (1) the firm is less experienced in the focal market (2) the signals from the focal market are noisier and (3) the firm is more experienced in markets where signals are extracted.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 8477
- Klassifikation
-
Wirtschaft
Trade: General
International Factor Movements and International Business: General
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Thema
-
multinational production
learning
expectations formation
information transmission
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Chen, Cheng
Sun, Chang
Zhang, Hongyong
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Chen, Cheng
- Sun, Chang
- Zhang, Hongyong
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2020
Ähnliche Objekte (12)
Digital forensics analysis based on cybercrime and the study of the rule of law in space governance
Import Competition, Heterogeneous Preferences of Managers, and Productivity
Investigations on mesoscale structure in gas–solid fluidization and heterogeneous drag model
IRE1α-XBP1 pathway promotes melanoma progression by regulating IL-6/STAT3 signaling
Discrepancies in the newsworthiness of maritime security in Chinese and US media outlets: a corpus-based discursive news values analysis
Prediction of rock mass class ahead of TBM excavation face by ML and DL algorithms with Bayesian TPE optimization and SHAP feature analysis
Confucius in The Times from 1785 to 2019: a diachronic news discourse analysis of newsworthiness
The Rise of 1,4‐BN‐Heteroarenes: Synthesis, Properties, and Applications
Top Five Stories of the Cellular Landscape and Therapies of Atherosclerosis: Current Knowledge and Future Perspectives
Therapeutic potential of autophagy in immunity and inflammation: current and future perspectives
Prognostic value of serum α-HBDH levels in patients with lung cancer
Conservation Laws and optimal system of extended quantum Zakharov-Kuznetsov equation
Digital forensics analysis based on cybercrime and the study of the rule of law in space governance
Import Competition, Heterogeneous Preferences of Managers, and Productivity
Investigations on mesoscale structure in gas–solid fluidization and heterogeneous drag model
IRE1α-XBP1 pathway promotes melanoma progression by regulating IL-6/STAT3 signaling
Discrepancies in the newsworthiness of maritime security in Chinese and US media outlets: a corpus-based discursive news values analysis
Prediction of rock mass class ahead of TBM excavation face by ML and DL algorithms with Bayesian TPE optimization and SHAP feature analysis
Confucius in The Times from 1785 to 2019: a diachronic news discourse analysis of newsworthiness
The Rise of 1,4‐BN‐Heteroarenes: Synthesis, Properties, and Applications
Top Five Stories of the Cellular Landscape and Therapies of Atherosclerosis: Current Knowledge and Future Perspectives
Therapeutic potential of autophagy in immunity and inflammation: current and future perspectives
Prognostic value of serum α-HBDH levels in patients with lung cancer
Conservation Laws and optimal system of extended quantum Zakharov-Kuznetsov equation
Digital forensics analysis based on cybercrime and the study of the rule of law in space governance
Import Competition, Heterogeneous Preferences of Managers, and Productivity
Investigations on mesoscale structure in gas–solid fluidization and heterogeneous drag model
IRE1α-XBP1 pathway promotes melanoma progression by regulating IL-6/STAT3 signaling
Discrepancies in the newsworthiness of maritime security in Chinese and US media outlets: a corpus-based discursive news values analysis
Prediction of rock mass class ahead of TBM excavation face by ML and DL algorithms with Bayesian TPE optimization and SHAP feature analysis
Confucius in The Times from 1785 to 2019: a diachronic news discourse analysis of newsworthiness
The Rise of 1,4‐BN‐Heteroarenes: Synthesis, Properties, and Applications
Top Five Stories of the Cellular Landscape and Therapies of Atherosclerosis: Current Knowledge and Future Perspectives
Therapeutic potential of autophagy in immunity and inflammation: current and future perspectives
Prognostic value of serum α-HBDH levels in patients with lung cancer