Dynamic pricing is increasingly popular in the perishable good markets, but its effect under competition is uncertain due to the potential for the prisoner's dilemma. I study profit and welfare implications of dynamic pricing techniques in a competitive setting. I construct a structural dynamic...

A foundational problem in marketing and economics involves accurately predicting purchase decisions at both individual and aggregate levels. Building on recent advances in neuroeconomic models of decision making, we investigate the possibility of improving upon the prediction accuracy of popular...

We study how China's recent anti-corruption campaign affects local economies. Our identification is based on a staggered difference-in-differences design and county-month level variations in inspection visits. We find that inspection visits decrease business entries by 0.9% in registered...

Financial institutions are interconnected directly by holding debt claims against each other (the network channel), and they are also bound by the market liquidity in selling assets to meet debt liabilities when facing distress (the liquidity channel). The goal of our study is to investigate how...

This paper studies whether market structure affects algorithmic recommendations in dominant platforms. We focus on the dual role of Amazon.com---as a platform owner and retailer. We find that products sold by Amazon receive substantially more ``Frequently Bought Together” recommendations...

Contingent capital in the form of debt that converts to equity as a bank approaches financial distress offers a potential solution to the problem of banks that are too big to fail. This paper studies the design of contingent convertible bonds and their incentive effects in a structural model...

Contingent convertibles (CoCos) and bail-in debt for banks have been proposed as potential mechanisms to enhance financial stability. They function by converting to equity when a bank approaches insolvency. We develop a capital structure model to analyze the incentives created by these forms of...

We study how shared experiences of political events can have a long-term effect on consumers' identity-driven brand choices, and how geopolitical conflicts can activate the effect. Our empirical strategy uses a generalized difference-in-differences design to exploit spatial variations in the...