Research

Published & Forthcoming Papers

Steering via Algorithmic Recommendations, with Nan Chen

The RAND Journal of Economics, forthcoming. [Online Appendix]

This article studies whether self-preferencing affects algorithmic recommendations on dominant platforms. We focus on the dual role of Amazon.com as a platform owner and retailer. We find that products sold by Amazon receive substantially more “Frequently Bought Together” recommendations across popularity deciles. To establish causality, we exploit within-product variation generated by Amazon stockouts. We find that when Amazon is out of stock, identical products sold by third-party sellers face an eight-percentage-point decrease in the probability of receiving a recommendation. The pattern can be explained by the economic incentives of steering but not explained by consumer preference. Furthermore, the steering lowers recommendation efficiency.  

Advantageous Selection with Intermediaries: A Study of GSE-Securitized Mortgage Loans

The RAND Journal of Economics, 54(4), 668-694, 2023.

This research studies the effects of mortgage subsidies and asymmetric information in the US mortgage market. I exploit discontinuities in interest rates generated by pricing rules and find patterns consistent with advantageous selection. I estimate an industry model that highlights the relationship between mortgage subsidies, intermediary lenders’ incentives, and borrowers’ advantageous selection. The model shows that mortgage subsidies enable advantageous selection, creating a deadweight loss of $7.90 billion. The counterfactual analysis reveals that pricing borrowers’ private information eliminates advantageous selection only if mortgages are not subsidized. Without the mortgage subsidy, pricing borrowers’ private information improves efficiency by $728.58 million.

Working Papers

Price Competition Under Information (Dis)Advantage, with Nan Chen

Mobile Apps and Targeted Advertising: Competitive Effects of Data Sharing, with Ding Li, revise and resubmit,  Journal of the European Economic Association

The Real Impact of FinTech: Evidence from Mobile Payment Technology, with Sumit Agarwal, Wenlan Qian, Yuan Ren, and Bernard Yeung, revise and resubmit, Management Science

Selected Work In Progress

Entry Design in Cross-Border E-Commerce, with Nan Chen

Distributional Effects of Car Ownership Restrictions, with Kwok Hao Lee

Other Publication

Welfare Implications of Congestion Pricing: Evidence from SFpark, with Pnina Feldman and Jun Li, Manufacturing & Service Operations Management, 24(2), 1091–1109, 2021.