This paper investigates whether firms’ responsiveness to customer reviews affects firms’ online reputation. Responsiveness is measured by the intensity (fraction) of reviews that are responded to whereas online reputation is measured using TripAdvisor’s average customer review rating (1-5...

Pricing behavior of firms in differentiated product markets has been studied intensely in recent empirical work. Despite several accounts in various industries, price leadership has remained mostly unassessed. This study analyzes price competition in the U.S. brewing industry with a focus on...

We describe a classroom experiment that illustrates the concepts of market power and the Lerner Index. Students are organized in groups, each making a decision for a monopolist. Monopolists face different (unknown) demand curves, each with a different (constant) elasticity. Through repetition,...

This paper employs a nation-wide sample of supermarket scanner data to estimate a large brandlevel demand system for beer in the U.S. Unlike previous studies, this work estimates the ownand cross-advertising elasticities in addition to price elasticities. The dimensionality problem is solved...

In this paper we applied a dynamic estimation procedure to inves- tigate the role of obesity on the demand for soda. The dynamic model accounts for storing behaviors, and allowed us to study price sensitiv- ity as well as sale sensitivity of soda consumers. By matching store level data to...

This paper analyzes the degree of market power in the U.S. brewing industry as measured by the closeness between the observed pricing behavior of ?firms and the equilibrium prices predicted by various pricing models: Bertrand-Nash, leadership, and collusion. Price leadership focuses on the...

The scientific evidence on the effect of sugar consumption on obesity has propelled policy makers in several states across the U.S. to propose the imposition of a tax on soft drinks. In this paper, we look at the effect of two tax events: a 5.5% sales tax on soft drinks imposed by the state of...

Pricing behavior of firms in differentiated product markets has been studied intensely in recent empirical work. Despite several accounts in various industries, price leadership has remained mostly unassessed. This study analyzes price competition in the U.S. brewing industry with a focus on...

We consider a model of vertical competition where downstream firms (retailers) purchase an upstream input from a monopolist and are able to differentiate from each other in terms of quality. Our primary focus is to study the effects of introducing a large retailer, such as a Wal-Mart...

The logit model is the most popular tool for estimating demand in differentiated products markets. However, in its aggregate version, practitioners have to “guess” the size outside good. We propose a way to remove the bias created by an inaccurate guess in simpler versions of the model.