Three essays in empirical industrial organization / Benjamin Shiller.

Format:

Book

Manuscript

Thesis/Dissertation

Author/Creator:

Shiller, Benjamin R.

Contributor:

Seim, Katja, advisor.

University of Pennsylvania.

Language:

English

Subjects (All):

Penn dissertations--Applied Economics.

Applied Economics--Penn dissertations.

Penn dissertations--Managerial science and applied economics.

Managerial science and applied economics--Penn dissertations.

Local Subjects:

Penn dissertations--Applied Economics.

Applied Economics--Penn dissertations.

Penn dissertations--Managerial science and applied economics.

Managerial science and applied economics--Penn dissertations.

Physical Description:

xi, 139 pages : illustrations ; 29 cm

Production:

2011.

Summary:

This piece is comprised of three smaller chapters focusing on separate questions. In the first, I ask whether shutting down resale markets by selling digital goods or by streaming digital content (renting) impacts firm profits. I use a two-period two-type model to determine the range of possible impacts of each distribution strategy. I then estimate the impact empirically in the context of video games by first finding demand parameters using a dynamic discrete choice model in a market with allowed resale, and then simulating the other cases. I find in theory that renting may raise profits over selling resellable goods, and selling non-resellable goods yields strictly more profits than either other alternative. Empirical results agree -- renting is slightly more profitable than selling resellable goods, and selling nonresellable goods yields 25% higher profits. Since consumers in aggregate are not worse off, curtailed resale should be allowed. The second chapter looks at the revenue distribution problem arising from bundling products from different producers together, and whether the theoretically motivated Shapley value, and various methods practical with readily available information, yield incentive compatible payment schemes. Using survey data on stated valuations for 50 popular songs, we calculate optimal bundle prices, revenues, and consumption. These data are used to estimate the payments to producers under the various strategies. The results show only the Shapley value is incentive compatible -- all owners earn more inside the bundle than out. But the feasible schemes are not. Thus there is room for additional research. In the last Chapter, I focus on the question of whether Sunday liquor sales increase consumption, reduce out of state purchases, and impact alcohol related accidents. A law change allowing ten percent of liquor stores in Pennsylvania to open on Sundays allows for a difference in difference analysis. Using stores far from Sunday stores and bordering states as the control, I find that Sunday sales displace sales from other in-state stores during the week, and displace out of state sales on Sundays. There is no evidence of an increase in alcohol related traffic accidents.

Notes:

Adviser: Katja Seim.

Thesis (Ph.D. in Applied Economics) -- University of Pennsylvania, 2011.

Includes bibliographical references.

OCLC:

793488951