Industrial Organization Commons^™

Essays On Market Inefficiencies Arising From Information Asymmetry And Market Power, Ming Ge

Doctoral Dissertations

This dissertation comprises three chapters that empirically investigate various kinds of market inefficiencies arising from seller misbehaviors. The first two chapters focus on physicians' overtreatment in healthcare markets. A standard reputation system falls short of effectively curbing overtreatment due to the credence-good nature of such a market: patients cannot tell whether a high-cost treatment recommendation (versus a less costly and complex treatment) is necessary even after the service is completed. In the first chapter, I propose a novel solution to reinstate the function of reputation by combining a reputation mechanism with patient search for second opinions. I conduct a laboratory …

The Economics Of Information And Communication Technologies In Our Society, Augusto Espin

Doctoral Dissertations

Information and Communication Technologies (ICTs) play a fundamental role in today's society. As ICTs they become more mature and widely adopted, societies become more dependent on their use to operationalize daily activities. However, there are multiple societal impacts of ICTs that are not yet well understood. In this dissertation, I explore three different aspects of ICTs that have been widely discussed by media and industry during recent years. I analyze these topics from an economic perspective, contributing to the debate with rigorous modeling and the ensuing discussion of its implications. First, I study the impact that the COVID-19 pandemic had …

Three Essays On The Political Economy Of Cultural Production And Creative Labor, Luke Pretz

Doctoral Dissertations

This dissertation investigates the relationships between capital, cultural production, and creative labor. Essay one theorizes the basis for the intensification of pop music stardom following the introduction of on-demand streaming technology. Prior to the emergence of on-demand streaming, record labels and broadcasters had a mutualistic relationship, wherein the near cost-free music provided by record labels formed the basis for radio broadcasts, which in turn formed the basis for the consumption of that music. Following the emergence of on-demand streaming the mutualistic relationship was ruptured. Broadcasters, in the form of streaming platforms, transitioned to the cost-efficient cultivation of masses of highly …

Essays On Advertising, Sodium Intake, And Soda Taxes, Ezgi Cengiz

Doctoral Dissertations

This dissertation empirically explores the economics of advertising, sodium intake, and sweetened beverage taxes in food and beverages industries in the United States. I use recent advances in econometrics and statistics and provide causally interpretable results to deepen our understanding of how individuals respond to changes in advertising and public health policies in consumer packaged good industries. In the first chapter, titled “Is traditional advertising effective? New evidence from mass-produced lager beer in the United States,” I present new evidence regarding the effectiveness of traditional advertising on product demand for mass-produced lager beer in the United States using …

Three Essays On Public Policy And Welfare In Developing Countries, Alvaro Jeronimo Callejas

Doctoral Dissertations

Developing countries typically implement public policies that modify the market structure to reach a specific goal. However, in this attempt to achieve a policy objective, policymakers may not consider unintended consequences caused by firms' and consumers' optimizing behavior. Moreover, the reaction of market agents to the implemented policy may undermind its effectiveness or lead to an outcome opposite to the one persuaded. This dissertation uses a set of structural models to assess the welfare effect of both intended and unintended consequences of public policies introduced in developing countries. In the first chapter, we evaluate the welfare implications of a public …

Essays On Franchising In The Service Industry, Jung Hwan Koh

Doctoral Dissertations

In this dissertation, I explore behavior of firms in franchising, a form of vertical structure that lies between vertical integration (a single firm) and vertical separation (separate firms). Even though franchising contracts outline legal terms and conditions for franchisees (downstream firms) and obligations for franchisors (upstream firms), conflicts between these two parties can arise due to information asymmetries and principal-agency problems. Rather than analyzing these problems, I explore specific conditions in which either a franchisee or a franchisor can exercise more control over the other party and thereby increase its profits. Specifically, I examine the role that: a) multi-unit ownership …

Three Essays On Behavioral Economics And Mechanism Design, Na Zuo

Doctoral Dissertations

My three essays on behavioral economics and mechanism design introduce two new microeconomic theoretical models.

In the first chapter, we develop an n-player theoretical model applying the concept of Virtual Bargaining to study cooperative behavior in public goods games characterizing team production. Virtual Bargaining is a modeling framework that characterizes how players may construct a tacit agreement to coordinate behavior in the absence of explicit communication. Players identify their worst-possible payoff outcome from any candidate agreement, and mutually best-respond with respect to maximization of their worst-payoff function. Players face uncertainties regarding whether other players will follow through on a candidate …

Essays On Decision Making Under Risk And Uncertainty, Dong Yan

Doctoral Dissertations

This dissertation uses economic theory, in tandem with experiments and other empirical methods, to better understand the role of information – for instance, missing information, conflicting information, and information overload – in determining outcomes in decision settings characterized by risk and uncertainty. In my first chapter, I use theory and experiments to compare market outcomes in a setting where the seller has better information on product quality than the buyer, and examine the effects of introducing a third-party who can credibly relay information on product quality. Under a range of conditions, I find market efficiency is higher when the information …

The Historical And Legal Creation Of A Fissured Workplace: The Case Of Franchising, Brian Callaci

Doctoral Dissertations

This dissertation explores the consequences of institutional change in capitalist firms, focusing on vertical dis-integration, the legal boundaries of the firm and what David Weil has called workplace "fissuring," in which corporations place intermediaries (subcontractors, temp agencies, or franchisees) between themselves and workers, often with negative consequences for workers. It focuses specifically on franchising, a type of fissured workplace in which one firm outsources retail operations to smaller, legally independent franchisees. The first chapter uses archival sources to identify the legal and policy changes driving workplace fissuring in the franchising context: specifically the relaxing of antitrust prohibitions on vertical restraints …

Pro-Social Consumer And Firm Behavior In Imperfectly Competitive Regional Agricultural Markets, Jill Fitzsimmons

Doctoral Dissertations

In this dissertation, I combine field research, econometric methods, and economic theory to analyze a market in which both firms’ and consumers’ choices are motivated by social preferences. This work contributes to the fields of behavioral economics, industrial organization, and local food systems economics. The dissertation expands the growing literature on social preferences to incorporate firms’ choices that are motivated by utility maximizing objectives in an environment that allows endogenous equilibrium prices and quantities. Firms with social preferences operate in a competitive environment in which they may face downstream market power. In particular, the research focuses on intermediated Farm to …

Constraining Labor's “Double Freedom”: Revisiting The Impact Of Wrongful Discharge Laws On Labor Markets, 1979-2014, Eric Hoyt

Doctoral Dissertations

I study the impact of wrongful discharge laws, a form of employment protection in the U.S., on union membership, wages, job tenure, and on-the-job training. There are several important contributions of this work to the previous social science research on the topic: First, I update the legal adoption dataset to 2014. Second, this is the first examination to date of the link between wrongful discharge laws and unions. Third, this is the first analysis that is able to include firm size controls in the investigation of the impact of wrongful discharge laws on wages. Finally, this analysis is the first …

Essays On Energy Efficiency And Pricing Behavior In The U.S. Automobile Market: Evidence From Hybrid Electric Vehicles, Sangsoo Park

Doctoral Dissertations

This dissertation consists of three essays on the energy efficiency and pricing behavior of firms in the U.S. automobile market with a focus on Hybrid Electric Vehicles (HEVs).

The first essay analyzes the market share of HEVs and evaluates consumers' willingness to pay (WTP) for future fuel cost savings by purchasing fuel efficient HEVs. Estimates of consumers' WTP for future fuel cost savings and the finding of an implicit discount rate of 8.35%~14.35% suggest that consumers undervalue future fuel cost savings from purchasing HEVs, and that consumers want a return on their investment on fuel cost saving HEV technology in …

The Effects Of Trade Competition On Health, And Determinants Of Workplace Behavior, Thomas Clayton Mcmanus

Doctoral Dissertations

My dissertation consists of three essays related to workplace behavior. In the first paper, we design a controlled laboratory experiment to study image motives in a setting where decisions signal intelligence. The experiment results show that in some settings social scrutiny can discourage individuals from making choices that signal their intelligence, despite evidence that the signal was privately valuable. In the second paper, we study the effect of Chinese import competition on occupational safety and health at US manufacturers. We find that a change in US trade policy and Chinese import shocks significantly increases worker injury and illness rates in …

Analysis Of The U.S. Electric Power Industry, Yin Chu

Doctoral Dissertations

In the U.S., the power industry is a primary energy consumption sector. Accurate knowledge on production efficiency in the industry has vital welfare implication from both economic and environmental perspectives. The first two essays investigate the causal impact of the vertical separation of the electricity transmission sector from the generation sector on production efficiency. In the first essay, I ask whether the specific market restructuring is sufficient to enhance how efficiently production is allocated among producers. Based on a difference-in-difference comparison on cost-sensitivity of utilization between coal-fired generators in the treatment region (Southwest Power Pool) and that in a control …

Interpreting, Stephanie Jo Kent

Doctoral Dissertations

What do community interpreting for the Deaf in western societies, conference interpreting for the European Parliament, and language brokering in international management have in common? Academic research and professional training have historically emphasized the linguistic and cognitive challenges of interpreting, neglecting or ignoring the social aspects that structure communication. All forms of interpreting are inherently social; they involve relationships among at least three people and two languages. The contexts explored here, American Sign Language/English interpreting and spoken language interpreting within the European Parliament, show that simultaneous interpreting involves attitudes, norms and values about intercultural communication that overemphasize information and discount …

Empirical Studies On The Effectiveness Of Soda Taxes To Curb Obesity, Francesca Colantuoni

Doctoral Dissertations

This dissertation presents a series of empirical studies to evaluate the effectiveness of soda taxes to curb the obesity epidemic. Chapter 1 describes the extent and severity of the obesity problem in the U.S., and discusses the policy interventions that have been proposed or enacted with the intent to fight obesity (e.g., sales taxes). Chapter 2 contains a study on the effect of two tax events on soda consumption: a 5.5% sales tax on soft drinks imposed in Maine in 1991, and a 5% sales tax on soft drinks levied in Ohio in 2003. We investigate this question by using …

Essays On Resource Allocation Efficiency And Behavior, Julianna Marie Butler

Doctoral Dissertations

This dissertation is comprised of three papers in the field of microeconomics. The first examines bidder’s choice auctions using both field and laboratory experiments. The field experiments demonstrate that traditional bidder’s choice auction theory does not always hold; the laboratory experiments subsequently isolate several characteristics of this auction format to explain why. We find that while price revelation does not impact the revenue superiority of the auction mechanism, multi-good demand significantly reduces the revenue premium. Intuitively, risk aversion plays less of a role when bidders have the opportunity to win multiple goods. The second chapter is theoretical and presents a …

Tax Policy And Entrepreneurship, Xiaowen Liu

Doctoral Dissertations

Small businesses and the entrepreneurial spirit are among the driving forces in economic growth and development in the United States. The US governments (both federal and state) have long been aware of the importance of entrepreneurship, and many policies are directed toward helping small businesses. However, whether such policies give rise to expected behavioral responses from small businesses remains inconclusive. This dissertation looks into the behavioral response of self-employed filers to individual income tax and the impact of state and federal tax policies on entrepreneurship. In the first chapter, we examine taxpayers’ behavioral response to the Alternative Minimum Tax (AMT). …

Essay On Firm Inventory And Innovation Behavior, Ye Gu

Doctoral Dissertations

This dissertation studies firm’s decisions on inventory investment and innovation activities. The first chapter examines firm inventory behavior. It resolves and simulates the production smoothing/buffer stock model using different sets of parameters. It shows that the relationship between a sales shock and inventory investment could be ambiguous which is different from previous predictions. The production smoothing/buffer stock model and the (S, s) model of inventory are tested using a rich Chinese firm-level dataset covering 769 manufacturing firms from 1980 to 1989, and I find that sales are positively correlated with inventory for raw materials, but negatively correlated with …

Essays On Trade Costs, Supply Chain Uncertainty And Ceo Compensation, Valentina Kozlova

Doctoral Dissertations

This dissertation consists of two chapters that examine high managerial pay and supply chain uncertainty.

Chapter 1 constructs a game-theoretic model in which high CEO pay emerges as the outcome of an arms race, with each firm paying its CEO highly to protect its competitive position against rivals who also pay highly. For an arms race to emerge, highly-paid CEOs must generate idiosyncratic, privately-known internal effects on profit, and CEO pay disparities must also generate asymmetric profit differences from external effects beyond the simple differences in pay. If the distribution of internal effects satisfies a key uniformity condition, an arms …

Essays On Forward Trading, Environmental Quality And Investor Behavior, And The Wta-Wtp Disparity, Jens Schubert

Doctoral Dissertations

This dissertation consists of three essays that study (i) collusion in forward markets, (ii) investor behavior in response to ecological disasters, and (iii) the willingness to accept - willingness to pay disparity in the presence of uncertainty.

Chapter 1 reports the results of a laboratory experiment that examines the strategic effect of forward contracts on market power in infinitely repeated duopolies. Two competing effects motivate the experimental design. Allaz and Vila (1993) argue that forward markets act like additional competitors in that they increase quantity competition among firms. Conversely, Liski and Montero (2006) argue that forward contracting can facilitate collusive …

Essays On Industrial Organization And Environmental Economics, Cristina Marie Reiser

Doctoral Dissertations

This dissertation consists of three chapters that examine how regulation by a central authority motivates changes in behavior.

Chapter 1 identifies the role of a tolerance policy as a manager’s regulatory mechanism which can deter worker misconduct in rank-order tournaments. When contestants’ actions cannot be perfectly monitored or doing so is prohibitively costly, misconduct takes place. This chapter develops a theoretical model in which contestants compete for a prize in a symmetric tournament and in which the organizer tolerates some level of misconduct. In addition to showing that zero tolerance does not minimize equilibrium misconduct, it also shows there exists …

Essays On Timing Of Firm Actions In Industrial Economics, Youping Li

Doctoral Dissertations

The timing of actions by firms plays an important role in industrial economics. It is key to strategic advantage in oligopoly models whether firms compete on quantity or on price. In a vertical relationship between input suppliers and final-good manufacturers, a firm which chooses a strategy first will take into account the response by those firms moving second and different sequence of play leads to different market outcomes. In my dissertation, I study the determinants and implications of the timing of firm actions in a variety of scenarios. In my first two essays, I examine how market leadership may arise …

Essays On Gross Receipts Taxes, Zhou Yang

Doctoral Dissertations

The dissertation focuses on the incentives and economic effects of gross receipts taxes (GRTs) versus corporate income taxes (CITs). Conventional wisdom holds that GRTs are very poor tax instruments; however, several states have shown renewed interest in GRTs since 2002. An interesting question to ask is why states are reconsidering GRTs in spite of all criticisms. Are GRTs really as bad as what conventional wisdom says? There is little rigorous theoretical or empirical work on GRTs. My dissertation aims to help fill this gap by providing both theoretical and empirical analysis on the comparative advantages and disadvantages of GRTs versus …

Justification Of Antisocial Behavior, Wiliam Robert Walton

Doctoral Dissertations

The purpose of this study was to further the study of conditional reasoning (CR) methodology to study personality. The direction of the expansion was two fold. First was to increase the content area of the study of aggressive personality by developing justification mechanisms (JMs) for antisocial behaviors. Second, was to determine the feasibility of using different reasoning-based tasks to measure JMs. Thus the development of a CR based reading comprehension task to measure antisocial JMs was undertaken. This study represents the preliminary investigation of the viability of this measure.

The Conditional Reasoning Reading Comprehension test (CR2C) was administered to 833 …