Looking at a large number of markets, I find that (i) prices and variety are higher when there are two competing supermarkets than in those with a single store and (ii) the two effects are positively correlated. This pattern persists after controlling for differences across markets in a variety...

Item pricing laws (IPLs) require a price tag on every item sold by a retailer. We study IPLs and assess their efficiency by examining and quantifying their costs and comparing them to their measurable benefits. On the cost side, we posit that IPLs should lead to higher prices because they...

Artificial Intelligence (AI) automates human decisions. Algorithmic pricing, a form of AI, sets prices by a computer. It is now common currency in ride-hailing, travel, drugs, gasoline, online goods---And great price variability characterizes all those settings. However, little is known about...

The nature of manufacturer's suggested retail prices (MSRPs) and whether their effect is pro- or anticompetitive is not well understood. We exploit a policy experiment in which a ban on MSRPs was imposed and then lifted a year later. We show that average prices increased by 2.1 percent as a...

Price comparison websites, where consumers can compare prices at a search cost that is close to zero, have become increasingly common around the world. Using daily information on prices, click-throughs, and the number of retailers for a sample of consumer electronics and durable goods over a...

Increasingly, retailers have access to better pricing technology, especially in online markets. Firms employ automated pricing algorithms that allow for high-frequency price changes. What are the implications for price competition? We develop a model of price competition where firms can differ...

In the last decade, many European countries have seen a sharp increase in the number of automated fueling stations. We study the effect of this process innovation on prices at stations that are automated and their competitors using a difference-in-differences matching strategy. Our estimates...

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...

Generic drugs play an important role in disciplining drug prices and controlling rising drug costs. However, the effect that an additional generic drug competitor has on drug prices is difficult to measure because the number of firms competing in a market is endogenously determined. We identify...

We examine the effects of entry on the pricing behavior of incumbent legacy airlines in a market where the newcomer is a rapidly expanding low-cost carrier - the Brazilian airline industry in the early 2000s. We estimate the timing and the determinants of price responses to entry allowing them...