PhD Dissertation 

[Job Market Paper]

Title: Consumer Similarity & Predictable Returns.  

Abstract: This paper shows that the stock prices of firms interconnected in the consumer market—by serving a similar class of consumers—can be predicted using consumer similarity measure. Using geospatial data on consumer visit patterns, I introduce a novel method to quantify the consumer similarity of publicly traded brick-and-mortar firms. With this measure, I construct a Clientele Network for each firm in the sample. I then create a unique portfolio for each firm based on its clientele network and show that the lagged return of this portfolio is a robust and significant predictor of stock returns. My findings reveal that stock prices do not immediately incorporate news about consumer-similar firms, leading to predictable returns across assets. (JEL G10, G11, G12, G14)

Essay two

Title: The Welfare Effect of Storing Goods.

Abstract: I have developed a partial equilibrium model that categorizes consumers into various classes according to their inventory cost to investigates intertemporal price discrimination in the storable goods market, with an emphasis on beer. This study introduces an identification strategy that better accounts for consumer purchase behavior by integrating pack size variations and discount histories. A dynamic demand model is employed, using NielsenIQ panel data and retail scanner data, to estimate demand and discern between storers and non-storers. The model analyzes how storers respond to price changes and pack size options, revealing that price fluctuations for smaller packs are used by monopolists to differentiate between consumer types. The findings enhance our understanding of optimal pricing and inventory cost's role in consumer classification, with broader implications for pricing strategy in competitive markets.

Essay three: 

Title: From Bitter Rivals to Sweet Business.

Abstract: Joint venture cases, unlike mergers and acquisitions, garner less scrutiny from the Federal Trade Commission and the Department of Justice. In this study, we analyze the impact of the Nestlé-Starbucks joint venture on pricing within the highly concentrated instant coffee market. Our findings indicate a coordination effect among the top coffee companies following the joint venture, leading to price outcomes that deviate from those predicted by the Nash-Bertrand equilibrium model. This paper further explores the policy implications of such joint ventures in concentrated markets, providing insights into regulatory considerations and competitive strategies.