This thesis studies the value of branding in the smartphone market. Measuring brand value with data available at product level potentially entails computational and econometric challenges due to data constraints. These issues motivate the three studies of the thesis. Chapter 2 studies the smartphone market to understand how operating system platform providers can grow one of the most important intangible assets, i.e., brand value, by leveraging the indirect network between two user groups in a two-sided platform. The main finding is that iPhone achieved the greatest brand value growth by opening its platform to the participation of third-party developers, thereby indirectly connecting the consumers and the developers via its app store effectively. Without the open app store, I find that iPhone would have lost its brand value by becoming a two-sided platform. Hence these findings provide an important lesson that open platform strategy is vital to the success of building platform brands. Chapter 3 solves a computational challenge in structural estimation of aggregate demand. I develop a computationally efficient MCMC algorithm for the GMM estimation framework developed by Berry, Levinsohn and Pakes (1995) and Gowrisankaran and Rysman (forthcoming). I combine the MCMC method with the classical approach by transforming the GMM into a Laplace type estimation framework, therefore avoiding the need to formulate a likelihood model. The proposed algorithm solves the two fixed point problems, i.e., the market share inversion and the dynamic programming, incrementally with MCMC iteration. Hence the proposed approach achieves computational efficiency without compromising the advantages of the conventional GMM approach. Chapter 4 reviews recently developed econometric methods to control for endogeneity bias when the random slope coefficient is correlated with treatment variables. I examine how standard instrumental variables and control function approaches can solve the slope endogeneity problem under two general frameworks commonly used in the literature.
| Identifer | oai:union.ndltd.org:TORONTO/oai:tspace.library.utoronto.ca:1807/36011 |
| Date | 13 August 2013 |
| Creators | Sun, Yutec |
| Contributors | Goldfarb, Avi |
| Source Sets | University of Toronto |
| Language | en_US |
| Detected Language | English |
| Type | Thesis |
Page generated in 0.0022 seconds