Job Market Paper
Do Transparency Policies Work as Expected? Evidence from the Retail Gasoline Market (Link)
Abstract: This paper investigates the effects of a price transparency policy on spatial competition in a retail fuel market. Using post-policy data, I examine how increased consumer-side transparency affects competition. I develop an empirical model of demand and supply that accounts for both fully informed consumers and those facing price uncertainty. Prior research shows that major brands coordinated before the policy and continued to do so afterward. Building on this evidence, I model coordination among major brands and allow its stability to depend on the share of informed consumers. I find that as more consumers become informed, price dispersion and profit margins decline. However, the extent of coordination among major firms remains stable. These findings suggest that while consumer-side transparency increases competitive pressure, its pro-competitive effects may be limited or even reversed if coordinating firms can also access the same transparency tools.
Working Papers
In Search of the Holy Grail: Impact of Foreign Direct Investment on Target Firms in Turkey (submitted) (Link)
with Izak Atiyas (Sabanci University) & Ozan Bakis (Bahcesehir University)
Abstract: This paper examines the causal effect of foreign acquisitions on various indicators of firm behavior using firm level data from Turkey. Firms with foreign ownership have higher labor productivity, higher sales, higher employment and are more export oriented compared to domestic firms. The question is whether this is because foreign investors target firms that are high performers to begin with, or because acquisitions of control result in improved performance. Our main results are as follows: We show that foreign investors indeed target more productive, larger and more export-oriented firms. Second, evidence of foreign control on firm performance is qualified. We find that foreign acquisitions do not have an impact on labor productivity or exports. There is some evidence of impact on sales, that lasts for 5 years. There is an impact on employment as well, but it lasts only two years.
Work in Progress
The Unintended Consequences of Transparency Laws: Evidence from the Italian Gasoline Market
with Giovanni Mastrobuoni (CCA & UniTO), Andrea Pozzi (EIEF), Simon Martin (University of Vienna), Davide Castellani (University of Amsterdam), Marcella Nicolini (University of Pavia)
Abstract: We study a Fuel Price Transparency Reform in Italy that requires petrol stations to prominently display the previous day’s regional average price alongside their own current price. While prices in Italy temporarily increased after the reform, we find no evidence of a long-run reduction in prices. Within Italy, matching stations across regions shows that those located in relatively high-priced regions set higher prices post-reform, consistent with reduced competitive pressure. The price increase was sizable but short-lived, amounting to roughly twice the pre-reform dealer margin of branded stations.
Driving Change: The Impact of Subsidies on Electric Vehicle Demand
with Joan-Ramon Borrell (University of Barcelona) & Jordi Teixido (University of Barcelona)
Abstract: This paper examines the effectiveness of Spain’s electric vehicle (EV) subsidy program, which offers financial incentives for new EV purchases and provides larger subsidies to consumers who scrap older vehicles. Using a demand-and-supply framework, we analyze how the policy influences EV adoption and expected future emissions.
The Unintended Consequences of EU Emission Standards on Vehicles
with Yihan Yan (DICE)
Abstract: This project examines the unintended consequences of the EU’s CO2 Emission Standards for passenger vehicles, focusing on the open pooling mechanism. Pooling allows high and low emission manufacturers to combine their fleets to meet regulatory targets, easing compliance but potentially weakening incentives for cleaner technology adoption. We develop a dynamic structural model to evaluate how pooling shapes manufacturers’ investment, pricing, and competition, as well as its overall impact on emissions.
An Approach to Estimation of Static Games of Incomplete Information
Abstract: In this paper, I study the estimation of static games of incomplete information in settings with a large state space and many players. I propose a new approach that can be implemented in any context where two-step methods (Hotz & Miller, 1993) are applicable. Using Monte Carlo simulations, I evaluate the accuracy of the proposed estimator and compare its performance with existing alternatives, including the standard two-step estimator.