Issue 2

June 2017

Who Loses when Prices are Negotiated? An Analysis of the New Car Market

We establish that there are large and persistent differences in final transaction prices for identical new cars, and that demographic characteristics explain at least 20% of the observed variation.

Do Multi-Plant Firms Reduce Misallocation? Evidence from Canadian Manufacturing

Using Canadian plant-level data, this paper shows that, depending on the industry, the differences in the average plant-level productivity and cross-plant allocation of resources between multi-plant a

The Value of Delegated Quality Control

This paper studies the case in which a firm delegates quality control to an independent monitor.

The Impact of Mergers on Quality Provision: Evidence from the Airline Industry

We examine how mergers affect quality provision by analyzing five U.S. airline mergers, focusing on on-time performance (OTP).

Common Values and Low Reserve Prices

I show that the benefit of a high reserve price in a common-values ascending auction is lower than in the observationally equivalent private values setting.

Productivity Dynamics and the Role of ‘Big-Box’ Entrants in Retailing

We use a dynamic model to measure the impact of the entry of large stores on incumbents’ productivity separate from demand while accounting for local markets and the endogeneity of entry.

Prices, Locations and Welfare When an Online Retailer Competes with Heterogeneous Brick-and-Mortar Retailers

This study proposes a novel spatial model in which an online retailer competes with heterogeneous brick-and-mortar retailers.