Job Market Paper
I study coverage requirements, a common regulation in the mobile telecommunications industry that intends to accelerate the introduction of new mobile telecommunications technologies to disadvantaged areas. I argue that the regulation's asymmetric nature may engender entry deterrence effects that limit its efficacy and lead to patterns of technology introduction that are not cost-efficient. To quantify the impact of coverage requirements on the introduction of new technologies and the cost of technology introduction, I develop and estimate a dynamic game of entry and technology upgrade under regulation. I estimate the model using panel data on mobile technology availability at the municipality level in Brazil. In counterfactual simulations, I find that coverage requirements accelerate the introduction of 3G technology by 1 year, on average, and reduce firms' profits by 24% relative to a scenario with no regulation. I find the entry deterrence effects to be small. Moreover, an alternative subsidization policy attains a slightly faster technology rollout and leads to substantial cost-savings for firms, though at the expense of reduced competition in the market. The subsidy is preferable to coverage requirements as long as the additional consumer surplus generated by one more firm in the market is less than 180 USD per consumer per year.
Winner of the Hiram C. Haney Fellowship Award in Economics
Product portfolios have a direct effect on prices via optimal pricing decisions and also an indirect effect because they influence retailers’ bargaining positions, and thus the wholesale prices retailers are able to procure. I study the effects of characteristics of retailers’ product portfolios, in particular their offerings of store-brand products, on the retail prices of national brands. I propose a Nash-in-Nash model of wholesale and retail price determination, which I estimate using IRI scanner data. I use the estimated model to simulate a counterfactual in which I eliminate store-brand products and to quantify the welfare effect of double marginalization. I find that the presence of store-brand products decreases the prices of national brands by about 1%, and that the elimination of double marginalization leads to substantial consumer welfare gains.
Work in Progress
Scheduling Competition and Efficiency in Passenger Transportation Markets: Evidence from Long Distance Buses in Brazil.
Many passenger transportation markets are characterized by low load factors, which suggests large inefficiencies. I quantify these inefficiencies in an environment in which firms compete on their schedules as well as prices. To do so, I use new and detailed data on firms' schedules and sales, collected in partnership with the Brazilian transportation regulator.
On Identification in Infinitely Repeated Games (with Jose Miguel Abito, Cuicui Chen, and Arkadiusz Szydlowski)
How much can be learned from data in dynamic settings without the Markov Perfect Equilibrium assumption? We develop tools to partially identify structural parameters in dynamic settings imposing only Subgame Perfection.
Access to Mobile Communications Technologies and Educational Achievement (with Raphael Bruce)
We collect detailed data on students' access to the internet, in partnership with a non-governmental organization that supplies students from disadvantaged backgrounds with mobile internet access. We combine this data with administrative data on students' scores in the national college admissions exam. We use these detailed data to measure the effect of access to mobile communications technologies on educational achievement.