Visual Representation of Hoberg/Phillips Product Space


The Hoberg and Phillips Text Based Industry Classifications have a spatial representation. All firms have a location in a product market space shaped as a unit sphere. Competitive product markets are areas of the sphere where many firms are located. Concentrated areas are sparsely populated.

Some regions of the product space have no firms residing there, as some text descriptions of products would describe products with no demand, such as the word combination: "eggs", "paint" and "gardening".

The best way to tap the full research power of this product market grid is to use the Text-based Network Industry Classifications (TNIC), which is a network way of identifying competitors to each firm. Competitors are firms residing in close proximity in product space to each firm based on a continuous measure of similarity. Another key benefit of TNIC industries is that industry composition is updated annually, and our own research indicates that the product market space itself thus dynamically changes over time. As a result, static fixed-location FIC classifications miss out on much of the picture.

Hoberg and Phillips
Data Library



Welcome to the Hoberg-Phillips Data Library

<< NEW: All TNIC and Fluidity data extended through 2017! >>

Data provided by Gerard Hoberg (USC)

and Gordon Phillips (Dartmouth)


 

Text-based Network Industry Classifications (TNIC) data [click here]

* These new industry classifications are based on firm pairwise similarity scores from text analysis of firm 10K product descriptions. Competitors are firm centric with each firm having its own distinct set of competitors - analogous to networks or a "Facebook" circle of friends. These new industry classifications are updated annually and offer more research flexibility, and are also more informative, than FIC (fixed industry) classifications such as SIC, NAICS, and the 10-K based FIC classifications below. Our research shows they sharply improve upon SIC and NAICS codes in explaining many different firm specific decisions, including firm profitability, Tobins Q and dividends. These benefits are outlined in Hoberg and Phillips (2010, 2016), with references available by clicking on above link.

Industry Concentration and Total Similarity Data [click here]

* HHI Concentration metrics and Total Similarity data is available based on TNIC Industries.

Product Market Fluidity Data [click here]

* Product Market Fluidity data assesses the degree of competitive threat and product market change surrounding a firm, and is based on Hoberg, Phillips and Prabhala (2014).

Vertical TNIC Data (VTNIC) [click here]

* Vertical TNIC data is comprised of two key databases, and is based on Fresard, Hoberg, and Phillips (2019 forthcoming).  The first is a firm-year panel indicating the extent to which firms are vertically integrated.  The second is a firm-pair-year database indicating the potential for vertical relatedness for every pair of firms in every year.


Papers that develop and use these data

Text-Based Network Industries and Endogenous Product Differentiation. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2016, Journal of Political Economy 124 (5), 1423-1465.

Product Market Synergies and Competition in Mergers and Acquisitions: A Text-Based Analysis. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2010, Review of Financial Studies 23 (10), 3773-3811.

Real and Financial Industry Booms and Busts. [Download Paper]
Gerard Hoberg and Gordon Phillips, 2010, Journal of Finance 65 (1), 45-86.

Product Market Threats, Payouts, and Financial Flexibility [Download Paper]
Gerard Hoberg, Gordon Phillips and Nagpurnanand Prabhala, 2014, Journal of Finance 69 (1), 293-324.

Innovation Activities and Integration through Vertical Acquisitions [Download Paper]
Laurent Fresard, Gerard Hoberg, and Gordon Phillips, 2019, Review of Financial Studies forthcoming.

Industry Choice and Product Language [Download Paper]
Gerard Hoberg and Gordon Phillips, 2018, Management Science 64 (8), 3735-3755..

Text-Based Industry Momentum [Download Paper]
Gerard Hoberg and Gordon Phillips, 2019, Journal of Financial and Quantitative Analysis, forthcoming 2019.

Product Integration and Merger Success [Download Paper]  
Gerard Hoberg and Gordon Phillips, 2018, Working Paper.

 


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