Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index Funds

By Ali Hortaçsu, Chad Syverson. 2004

693 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Marketing

View Paper: https://www.semanticscholar.org/paper/9433d13ce9b7f99a88db395af0dcd7c376bb3ab1

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

In Marketing

Citations in the corpus

Mutual Fund Competition, Managerial Skill, and Alpha Persistence (2018, neutral): “…funds is less straightforward than 10Because the risk-return profiles of similar-target index funds are first order identical, competitive effects should be reflected in fees charged by funds (see Elton, Gruber, and Busse (2004), Hortacsu and Syverson (2004), or Cooper, Halling, and Lemmon (2012)).”
Strategic Price Complexity in Retail Financial Markets (2009, background): “However, differentiation and switching costs do not completely account for the failure of competition in these markets (Hortacsu and Syverson 2004).”
Online Demand Under Limited Consumer Search (2010, positive): “In our case, like Hortaçsu and Syverson (2004), we model search for differentiated products, but unlike them, we have collected direct measures of search outcomes, allowing us to estimate a more general demand model.”
Strategic Obfuscation and Consumer Protection Policy (2014, positive): “1 Firms take advantage of consumers’ diﬀerent information levels regarding price and product attributes leading to price dispersion for almost identical products (Christoﬀersen and Musto (2002); Hortacsu and Syverson (2004)).”
Behavioral Biases of Mutual Fund Investors (2011, neutral): “Some types 31 See Barber, Odean, and Zheng (2005), Hortacsu and Syverson (2004), and Carlin (2008). of investors appear to make effective choices that enhance portfolio performance, while others do not.”
Chapter 21 - Household Finance: An Emerging Field∗ (2013, positive): “Choi, Laibson, and Madrian (CLM, 2010) conduct an experiment that builds on the finding that the crosssectional variation in fees charged by S&P 500 index funds is surprisingly similar to the variation found in actively managed funds (Hortaçsu and Syverson, 2004).”
Rules versus discretion in loan rate setting (2010, neutral): “Empirical research on price dispersion is still very limited (see Dahlby and West (1986), Hortaçsu and Syverson (2004), and Sorensen (2000)) and this literature typically aims to test theories of information differentiation.4 Our study is the first to empirically analyze the crosssectional…”
An empirical model of search with vertically differentiated products (2011, methodology): “…circumstances, for example when several price quotations arrive at a time.3 Finally, and most importantly, another difference is that price dispersion in Hortaçsu and Syverson (2004) is a result of firms playing pure strategies, while in the model presented here it is a result of mixed strategies.”