Publications

2021
Working Paper

Exclusive Dealing and Entry by Competing Two-Sided Platforms

By: Cristian Chica, Kenneth Chuk and Jorge Tamayo

We study competition between horizontally differentiated platforms offering exclusive and non-exclusive contracts to one side of the market (content providers). The introduction of non-exclusive contracts in addition to exclusive contracts softens the competition for... View Details

Keywords: Two-Sided Markets; Platform Price Competition; Network Externalities; Exclusive Contracts; Multi-homing; Digital Platforms; Price; Competition; Contracts

26 Jul 2010
Research & Ideas

Yes, You Can Raise Prices in a Downturn

framing price appropriately.” Alternatively, currently popular strategic doctrine has many executives sailing off, like Ahab or Sinbad, in search of "blue oceans"—market spaces where allegedly no one else is fishing. Avoiding... View Details

Keywords: by Sean Silverthorne; Retail; Consumer Products

08 Mar 2012
Working Paper Summaries

Customer-Driven Misconduct: How Competition Corrupts Business Practices

Keywords: by Victor Manuel Bennett, Lamar Pierce, Jason A. Snyder & Michael W. Toffel; Auto

June 2014
Article

The Price of Wall Street's Power

By: Gautam Mukunda

Over and over again, executives make decisions that aren't in their companies' best interests, in response to pressure from Wall Street. Though many believe this happens because firms have a "fiduciary duty" to maximize shareholder returns, U.S. executives do not, as a... View Details

11 Jun 2012
Research & Ideas

When Business Competition Harms Society

Competition Corrupts Business Practices, suggests that many organizations in highly competitive markets are likely to bend the rules if doing so will keep their customers from leaving for a rival firm.... View Details

Keywords: by Carmen Nobel; Auto

September–October 2021
Article

Frontiers: Can an AI Algorithm Mitigate Racial Economic Inequality? An Analysis in the Context of Airbnb

By: Shunyuan Zhang, Nitin Mehta, Param Singh and Kannan Srinivasan

We study the effect of Airbnb’s smart-pricing algorithm on the racial disparity in the daily revenue earned by Airbnb hosts. Our empirical strategy exploits Airbnb’s introduction of the algorithm and its voluntary adoption by hosts as a quasi-natural experiment. Among... View Details

Keywords: Smart Pricing; Pricing Algorithm; Machine Bias; Discrimination; Racial Disparity; Social Inequality; Airbnb Revenue; Revenue; Race; Equality and Inequality; Prejudice and Bias; Price; Mathematical Methods; Accommodations Industry

SSRN

May 2022
Supplement

Maestro Pizza (B): The Competition Awakens

By: Ramon Casadesus-Masanell and Fares Khrais

Maestro pizza opened its first store in 2013 after its founder, Khalid Al Omran, recognized an opportunity in Saudi Arabia to offer high quality pizza at affordable prices. The business grew rapidly and under the radar at first, but soon enough caught the attention of... View Details

Purchase

2025
Working Paper

Prices and Concentration: A U-shape? Theory and Evidence from Renewables

By: Michele Fioretti, Junnan He and Jorge Tamayo

We show that when firms compete via supply functions, transferring high-cost capacity to the largest, most efficient firm—thereby diversifying its production technologies while increasing concentration—can lower prices by prompting the leader to expand output and... View Details

Keywords: Diversified Production Technologies; Concentration Levels; Market Power; Supply Function Equilibrium; Hydropower; Energy Transition; Renewable Energy; Price; Competition; Supply and Industry; Energy Industry; Colombia

January – February 2009
Article

Content vs. Advertising: The Impact of Competition on Media Firm Strategy

By: David Godes, Elie Ofek and Miklos Sarvary

Media firms compete in two connected markets. They face rivalry for the sale of content to consumers, and at the same time, they compete for advertisers seeking access to the attention of these consumers. We explore the implications of such two-sided competition on the... View Details

Keywords: Monopoly; Duopoly and Oligopoly; Business Model; Price; Media; Competitive Strategy; Competitive Advantage; Advertising; Profit; Media and Broadcasting Industry

26 Nov 2018
Working Paper Summaries

Demand Estimation in Models of Imperfect Competition

Keywords: by Alexander MacKay and Nathan H. Miller

2021
Government Testimony

How Health Care Consolidation Is Contributing to Higher Prices and Spending, and Reforms That Could Bolster Antitrust Enforcement and Preserve and Promote Competition in Health Care Markets

By: Leemore S. Dafny

Reforms to antitrust law and enforcement can help to address rising healthcare prices and spending. View Details

Keywords: Antitrust Law; Health Care and Treatment; Consolidation; Price; Spending; Cost Management; Governing Rules, Regulations, and Reforms; Competition; United States

January 2004 (Revised May 2006)
Case

Yamato Transport: Valuing and Pricing Network Services (A)

By: Felix Oberholzer-Gee, Tarun Khanna and Masako Egawa

Yamato Transport is the leading Japanese parcel delivery company and has dominated its industry for more than two decades. In response to new competitive challenges, Yamato must decide how to reposition itself in the industry and optimize the size of its network. The... View Details

Keywords: Value Creation; Competition; Transportation Networks; Monopoly; Shipping Industry; Japan

Educators

Purchase

31 Aug 2009
Research & Ideas

Why Competition May Not Improve Credit Rating Agencies

competition is really the right medicine. "Competition in the ratings industry has been increasing, and there have been calls for yet more competition. Whether competition is likely to reduce quality or... View Details

Keywords: by Martha Lagace; Financial Services

The Price Effects of Cross-Market Mergers: Theory and Evidence from the Hospital Industry

We consider the effect of mergers between firms whose products are not viewed as direct substitutes for the same good or service but are bundled by a common intermediary. Focusing on hospital mergers across distinct geographic markets, we show that such... View Details

Research Summary

Overview

Professor Ngwe develops structural models of supply and demand to probe deeply into the dynamics of shoppers and retailers, especially unobservable aspects of purchase behavior. He focuses on the adoption of outlet stores in the fashion industry, using transactional... View Details

Keywords: Outlet Stores; Price Discrimination; Retail; Discounts; Location; Industrial Organization; Structural Modeling; Fashion Industry; Retail Industry

02 Apr 2019
Research Event

Women Pay a Higher Career Price in Today's Always-On Work Culture

educated and valuable talent in a competitive labor market. The loss of women managers—and potential future leaders—has been particularly vexing for executives. Many of them cling to the belief that women’s struggle to balance their home... View Details

Keywords: by Danielle Kost; Consulting; Service

28 May 2009
Working Paper Summaries

Monopolistic Competition Between Differentiated Products With Demand For More Than One Variety

Keywords: by Andrei Hagiu; Video Game; Web Services

Summer 2019
Article

The Price Effects of Cross-Market Mergers: Theory and Evidence from the Hospital Industry

By: Leemore S. Dafny, Katherine Ho and Robin S. Lee

We consider the effect of mergers between firms whose products are not viewed as direct substitutes for the same good or service but are bundled by a common intermediary. Focusing on hospital mergers across distinct geographic markets, we show that such combinations... View Details

Keywords: Mergers and Acquisitions; Markets; Geographic Scope; Price; Outcome or Result; Insurance; Health Industry