Bruno Pellegrino

I am a Ph.D. Candidate at the University of California Los Angeles (Anderson School). I do research at the intersection of Macroeconomics, Finance and Industrial Organization.

I will join University of Maryland's Robert H. Smith School of Business as Assistant Professor of Finance in January 2021.

+1 (312) 257-8888

Job Market Paper

European Economic Association (EEA) - Best Job Market Paper Award (2019-2020)

UCLA - Xavier Drèze Prize, for Outstanding Research Paper (2020)

Unicredit Foundation Job Market Bootcamp - Best Presentation Award (2019)

Abstract: Industry concentration and profit rates have increased significantly in the United States over the past two decades. There is growing concern that oligopolies are coming to dominate the American economy. I investigate the welfare implications of the consolidation in U.S. industries, introducing a general equilibrium model with oligopolistic competition, differentiated products, and hedonic demand. I take the model to the data for every year between 1997 and 2017, using a data set of bilateral measures of product similarity that covers all publicly traded firms in the United States. The model yields a new metric of concentration—based on network centrality—that varies by firm. This measure strongly predicts markups, even after narrow industry controls are applied. I estimate that oligopolistic behavior causes a deadweight loss of about 13% of the surplus produced by publicly traded corporations. This loss has increased by over one-third since 1997, as has the share of surplus that accrues to producers. I also show that these trends can be accounted for by the secular decline of IPOs and the dramatic rise in the number of takeovers of venture-capital-backed startups. My findings provide empirical support for the hypothesis that increased consolidation in U.S. industries, particularly in innovative sectors, has resulted in sizable welfare losses to the consumer.

Graphs: [Figure 3] — Press Coverage: [Pro-Market @Stigler Center]

Presentations: Texas A&M Mays, Bank of Italy, Stockholm IIES, Northwestern Kellogg (Finance), Northwestern Kellogg (MEDS), University of Southern California (Economics Dept.), Einaudi Institute for Economics and Finance (EIEF), EPFL-Swiss Finance Institute, University of Maryland Smith, University of Cambridge, Bocconi University, UCLA, Finance Organizations and Markets (FOM), European Economic Association, NBER Summer Institute (scheduled), Society for Economic Dynamics (scheduled)