Industrial Organization Commons^™

Applied Essays In Industrial Organization: Pricing In Short-Term Rental Markets And Policy Implications In Tobacco Consumption, Richard J. Applin

Theses and Dissertations--Economics

Economics 101 teaches that the interaction between supply and demand determines the prices and quantities consumers face. In econometric research, it is critical to remain aware of this canonical fact, as failure to do so can introduce bias in the estimation of economic parameters. This dissertation empirically demonstrates the importance of factoring in economic structure in three applied essays.

In the first essay, I estimate the impact of rating visibility on Airbnb pricing using a two-way fixed effects model. To do so, I primarily rely on an instrumental variables approach that I argue should identify a supply-side relationship. I provide …

Antitrust Implications For Mergers Involving Maverick Firms, Alexander Mcglothlin

Theses and Dissertations--Economics

Maverick firms are defined in the Horizontal Merger Guidelines as those firms that may exert a disproportional competitive effect in markets where they compete. The Guidelines mandate that mergers and acquisitions involving maverick firms be given special consideration by the Agencies, however not much is known about maverick firms or their competitive effects when they are acquired. The Guidelines describe characteristics that may be present in a maverick firm, but stop short of providing a discrete test that may be used for their identification. They are often small firms whose acquisitions do not warrant reporting to the Agencies due to …

Essays On Price Discrimination And Demand Learning, Benjamin E. Wallace

Theses and Dissertations--Economics

This dissertation consists of three essays examining how and why firms set prices in markets. In particular, this dissertation shows how firms may utilize nonlinear pricing to price discriminate, how firms may experiment with the prices they set to learn about the demand function in the market they serve in later periods and the effects of these pricing strategies on consumer welfare.

In Essay 1, I show how firms in the milk market use nonlinear price schedules -- quantity discounts -- to price discriminate and increase profits. I find that firms have a greater ability to price discriminate on their …

Price Discrimination On Complementary Goods: Evidence From The Men's Shaving Razor Market, Zheng Yang

Theses and Dissertations--Economics

This dissertation analyzes the men's razor market to examine whether a monopolist can implement price discrimination for the complementary goods. I estimate a demand system for razors using the random coefficient logit model with market level sales data from the Nielsen Store Scanner dataset and individual demographic data from the March CPS. The estimated parameters are used to construct price-cost markups. By comparing the markups of different products, I find evidence that Gillette uses a two-part tariff strategy. This conclusion can be generalized as that of a monopolist setting the prices of tie-in products consistent with a two-part tariff.

Essays On The Role Of Government Regulation And Policy In Health Care Markets, Grayson L. Forlines

Theses and Dissertations--Economics

Understanding how health care markets function is important not only because competition has a direct influence on the price and utilization of health care services, but also because the proper functioning, or lack thereof, of health care markets has a very real impact on patients who depend on health care markets and providers for their personal well-being. In this dissertation, I examine the role of government policies and regulation in health care markets, with a focus on the response of health care providers. In Chapter 1, I analyze the impact of Medicare payment rules on hospital ownership of physician practices. …

Three Essays On Cross-Border Mergers And Acquisitions, Derrick T. Jenniges

Theses and Dissertations--Economics

This dissertation consists of three essays on cross-border mergers and acquisitions (M&As). The first essay studies horizontal and vertical investments between Organization for Economic Cooperation and Development (OECD) countries, while the second essay examines how investment patterns vary by country development. The third essay estimates the effect of merger policy reform on cross-border M&A activity in Europe.

The first essay tests how well theories of horizontal and vertical foreign direct investment (FDI) explain observed patterns of cross-border M&As in OECD countries. Horizontal investment occurs when multinational firms produce in foreign countries to serve the foreign market, whereas vertical investment occurs …