“Collaborate or Consolidate: Assessing the Competitive Effects of Production Joint Ventures”, with Aleksandr Yankelevich (Job Market Paper #1)
We analyze a symmetric joint venture in which firms facing external competition collaborate in input production. Under standard regularity conditions, the collaboration leads to higher profits than a horizontal merger, whereas the effect on prices and quantities depends on the form of downstream competition. When firms compete in prices, downstream prices for all firms are higher following a symmetric joint venture than following a merger. The reverse result may obtain under quantity competition. In light of our results regarding profits, we provide reasons why firms might still wish to merge: imperfect information, cost synergies, and organizational asymmetries.
“On the Role of Matching and Social Norms in Epidemics Dynamics” (Job Market Paper #2)
This paper studies the effect of social norms on the evolution of an epidemics. Individuals make binary decisions regarding the level of protection from contagion and the payoffs from those decisions would depend on the popularity of their choices. Social norms can influence the decision both by lowering the payoffs from playing outside the norm or by lowering the probability of interaction. I’ve found that the stronger the norms are, the higher the incidence of the disease needed for agents to start protecting, but also, the eradication is easier to occur. I extend the analysis to the asymptomatic latency case and I extend the model to include different variations affecting the agents’ decisions. Finally, I analyze different types of government interventions to eradicate the disease.
“Hypermarts and Gasoline Retailers”, with Joseph Cullen and Jed Brewer
To the concern of their smaller competitors, Wal-Mart, big-box stores, and other high-volume, low-price retailers have entered many retail industries globally in recent decades. In particular, big-box stores have increased in presence and market share in the U.S. retail gasoline industry. We examine the price impact of these “hypermarts” on traditional gasoline retailers and find it to be economically large. The presence of a hypermart reduces a mean retailer’s profit by over one-half. This impact is considerably larger than that induced by the presence of a typical retailer. We employ a unique data set covering a medium-sized metropolitan areas: Tucson, AZ.
Work in progress
“Bank Run Dynamics on a Network of Depositors”
“Epidemics Evolution in a Network of Cities”
“Impact of Public Hospital Competition in the US Health Care System”