April, 2020
When firms meet in multiple markets, they can leverage punishment ability in one market to sustain collusion in another. This is the first paper to test this theory for multiproduct retailers that sell consumer goods online. With data on the universe of consumer goods sold online in Sweden, I estimate that multimarket contact increases prices. To more closely investigate what drives the effect, I employ a machine-learning method to estimate effect heterogeneity. The main finding is that multimarket contact increases prices to a higher extent if there are fewer firms participating in the contact markets, which is one of the theoretical predictions. Previous studies focus on single-product firms that meet in multiple geographical locations. In this setting, however, geographical locations are irrelevant. I instead define markets as different product markets. This is the first paper to study multimarket contact and collusion with this type of market definition. As theory predicts, the effect is stronger in this setting.
June, 2020
This paper explores the link between the vertical relation and downstream price conformity. Following the descriptions of how manufacturers enforce resale price maintenance in the European Commission's sector inquiry, I estimate how retail price conformity depends on the intensity of the vertical relationship. I find a positive effect of the vertical relation intensity on the retail price conformity. I use a machine-learning driven estimation of heterogeneous effects to show how the estimated effect varies with product, brand, and retailer characteristics. The effect is higher when brands sell through common retailers, retailers have lower rating, categories include many products, and the brand has many products. These results concur with contexts in which resale price maintenance hurts consumers.
Working paper available upon request.
December, 2019
This paper explores how distraction from a consumer's surroundings may influence consumption. In a natural field experiment with 16 fast-food restaurants over five months, we randomly varied the degree of familiarity of the background music. We find that playing familiar music reduces revenues and quantity sold by more than 4% relative to playing similar but unfamiliar music. We conduct a complementary survey that suggests that the reason that familiar music reduces consumption is that it distracts consumers. We conclude that when consumers become distracted, they consider fewer consumption opportunities and therefore consume less. The results have implications for the literature on attention and framing as well as for marketing policy.
Selected media: The Guardian The Times The Telegraph Fox News Daily Mail
June, 2016 (master thesis)
I present a theoretical model for competitive interaction between schools and grade inflation. To test the model, I estimate the effect of competition on grade inflation in Swedish upper secondary schools using data from all schools in the years 2012-2015. To solve the endogeneity problem of competition, I use Instrumental Variable estimation with Fixed Effects. I use the sudden shutdown of 17 schools due to the bankruptcy of the John Bauer Group in 2013 as an instrument for competition. The IV results and the exploration of an adverse effect of grade inflation both support the theoretical model. The results show that there is a positive causal effect of competition on grade inflation.
Swedish Competition Authority thesis prize announcement
Award for distinguished thesis by Sparbanksstiftelsen Färs och Frosta