This dissertation first develops a theoretical framework to enable the estimation of cost efficiency and conduct parameter without total cost data. By validating this framework using U.S. airline data, this dissertation shows the feasibility of the theoretical framework. Based on the estimates of marginal cost efficiency and conduct parameter, this dissertation also finds some support for the Quiet Life Hypothesis. In Chapter III, this dissertation analyzes the determinants for price dispersion, especially conduct parameter and cost efficiency. Generally speaking, we find negative relationship between conduct parameter and price dispersion and negative relationship between marginal cost efficiency and price dispersion. In Chapter IV, this thesis examines the dynamics that lead to high price dispersion. To be more specific, this thesis concentrates on advanced days purchased and load factor.

This paper sets out to explain the observed mortgage rate dispersion in the Swedish mortgage rate market through a consumer search model. Utilizing a structural approach that only requires average mortgage rate data, the search cost distribution for consumers are estimated for the period May 2016 to February 2017. Examining the different contract lengths for mortgages, the three-months and one-year mortgage rates do not fit the consumer search cost framework but the two- tree- and five-year fixed mortgage contracts fits well. The results indicate that there is considerable search cost in the mortgage market and that the low number of searches yields considerable market power to the banks, in the sense of being able to price mortgages above marginal cost. Further the fitted model for the five-year fixed mortgage rate is used to simulate the effects from a cost increase for the banking sector. The results indicates that due to the high consumer search costs present in the market, the mortgages facing the consumers will increase substantially to modest cost increases. A decrease in the consumers search costs are also simulated, which results in lower expected mortgage rates. This paper adds to the literature through the use of average monthly data and a search cost perspective to the question of why there are dispersions of mortgage rates in the Swedish mortgage market.

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We investigate the impact of consumer search and competition on pricing strategies in Germany's electricity retail. We utilize a unique panel dataset on spatially varying search requests at major online price comparison websites to construct a direct measure of search intensity and combine this information with zip code level data on electricity tariffs between 2011 and 2014. The paper stands out by explaining price dispersion by differing pricing strategies of former incumbents and entrant firms, which are distinct in their attributable shares in informed versus uninformed consumers. Our empirical results suggest causal evidence for an inverted U-shape effect of consumer search intensity on price dispersion in a clearinghouse environment as in Stahl (1989). The dispersion is caused by opposite pricing strategies of incumbents and entrants, with incumbents initially increasing and entrants initially decreasing tariffs as a reaction to more consumer search. We also find an inverted U-shape effect of competition on price dispersion, consistent with theoretical findings by Janssen and Moraga-González (2004). Again, the effect can be explained by opposing pricing strategies of incumbents and entrants. (authors' abstract) / Series: Department of Economics Working Paper Series

In the extensive literature on price dispersions that exists to date, there is a gap in the analysis of how market structure affects prices as well as the degree of dispersion in prices. Specifically, the literature is deficient in analyzing how price levels and price dispersion are affected by the number of firms operating in a market. I use secondary data to look at the prices of prescription drugs at the retail level in nine hundred and seventy pharmacies across one hundred and sixty five markets in Maryland and compare price dispersion across these brick and mortar pharmacies as well as across a separate set of pharmacies that only operate online. I compare online versus offline price dispersion, as well as price dispersion in purely offline markets from the structure of the market’s context. Stahl’s (1989) theoretical model is used to formulate and test the hypotheses that an increase in the proportion of positive search cost consumers in a market will cause price levels to rise and price dispersion to initially increase and then decrease. Furthermore, in markets with the proportion of positive search cost consumers above a threshold level, an increase in the number of firms will also lead price levels to rise and price dispersion to initially increase and then decrease. Conversely, in markets with positive search cost consumers below the threshold level, an increase in the number of firms will lead to lower price levels, i.e. the competitive outcome. For the analysis, I look at prices at the pharmacy level and price dispersion at the market level and determine the proportion of high search cost consumers for a specific pharmacy or a specific market relative to the other pharmacies and markets in the dataset. I find that a significant part of the differences in prices for a homogeneous prescription drug can be attributed to asymmetric information and that price dispersion is higher in markets with a greater number of firms, and price levels are higher in low income neighborhoods.

O fenômeno da dispersão de preços é mais comum do que se supõe a partir da microeconomia básica. O presente estudo busca avaliar a importância dos custos de procura na dispersão de preços de gasolina e etanol no município de São Paulo. Para tanto, são utilizados como referenciais teóricos modelos de dispersão e estudos de estruturas de mercado. A parte empírica contempla duas etapas, na primeira é estimado qual o mercado relevante para o varejo de combustíveis e, posteriormente, a descrição da dispersão na área. Os dados dos preços de varejo são coletados semanalmente desde o ano de 2001 e a série histórica foi cedida pela Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - ANP. Os resultados das estimações nos mostram que, apesar da dispersão, possivelmente existe maior relação com a heterogeneidade dos estabelecimentos do que com a busca do consumidor. / The price dispersion phenomenon is more common than might be supposed from basic microeconomics. This study aim to evaluate the importance of search costs in the dispersion of fuel prices in São Paulo city. As theoretical reference, we use models of price dispersion and market structures studies. The empirical part has two stages, first is estimated the relevant retail fuel market, and then we describe the dispersion in the area. The retail prices data of gasoline and ethanol have been collected since 2001 and the time series was provided by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - ANP. The results shown that although there is dispersion it is more closely related to the establishments heterogeneity, than with consumer search.

This doctoral dissertation documents price-setting behavior in Brazil using a unique dataset of store-level price quotes collected by the Fundação Instituto de Pesquisas Econômicas (FIPE) to construct the Consumer Price Index (CPI-FIPE) from 1989 to 2007. The dataset is extensive in terms of time (222 months), inflation variability (from hyperinflation to monthly deflation), and basket of goods and services (almost 11 million price quotes on 8,294 brands). The first chapter documents new evidence on the frequency and absolute size of price changes during the sample period. I find evidence of marked differences between hyperinflation (1989-1993) and low inflation (1995-2007) periods. During hyperinflation, the frequency and magnitude of price movements are remarkably higher. Once Plano Real took place, both statistics immediately shifted to a much lower and stable level, as did inflation. Price increases are more frequent during hyperinflation, although a small share of prices (mostly food items) drops every month. During low inflation, price decreases are almost as likely as price increases. I also document heterogeneities across different classifications of products. The second chapter investigates the relationship between inflation and relative price variability (RPV). The intramarket RPV significantly increases with the rate of inflation, but I find marked differences between the two inflationary scenarios. During hyperinflation, the relationship is roughly 70% of the magnitude of the relationship during low inflation. Higher levels of inflation are associated with higher degrees of inflation variability, yet the link is somewhat looser during the hyperinflation period. The impact of deflation (in absolute terms) is smaller than the impact of positive inflation during hyperinflation, yet stronger during low inflation. Finally, the third chapter documents the importance of Plano Real on consumers\' search costs. I estimate a nonsequential search model for homogeneous goods to structurally retrieve search costs using price data on 15 different brands of goods and services. The empirical strategy consists of using the Plano Real as a structural breakpoint in the data. I estimate the model splitting the data into before (January 1993 to June 1994) and after (August 1994 to December 1995) the plan, and I find evidence on first-order stochastic dominance of the search cost distribution of the former into the latter; that is, search costs are higher during hyperinflation. I also document evidence of the effect of the plan on shrinking price-cost margins. When searching is less costly, stores lose market power. / Esta tese de doutorado documenta comportamentos de fixação de preços no Brasil através de uma base de dados única de cotações ao nível da loja coletadas pela Fundação Instituto de Pesquisas Econômicas (FIPE) para a construção do Índice de Preços ao Consumidor (IPC-FIPE) de 1989 a 2007. Minha base de dados é extensa em tempo (222 meses), variabilidade da inflação (de hiperinflação à deflação mensal) e cesta de bens e serviços (quase 11 milhões de cotações sobre 8.294 marcas). O primeiro capítulo documenta novas evidências sobre a frequência e o tamanho absoluto das mudanças de preços durante o período da amostra. Eu encontro diferenças marcantes entre os períodos de hiperinflação (1989-1993) e baixa inflação (1995-2007). Durante a hiperinflação, a frequência e a magnitude dos movimentos de preços são notavelmente maiores. Após o Plano Real, ambas as estatísticas imediatamente mudam para um nível significativamente mais baixo e estável, seguindo o movimento da inflação. Aumentos de preços são mais frequentes durante a hiperinflação, embora uma pequena parcela de preços (principalmente de alimentos) ainda se reduza a cada mês. Sob inflação baixa, reduções de preços são quase tão prováveis quanto aumentos de preços. Eu também documento heterogeneidades presentes em diferentes classificações de produtos. O segundo capítulo investiga a relação entre inflação e variabilidade de preços relativos (VPR). A VPR intra-mercado aumenta significativamente com a taxa de inflação, mas eu encontro diferenças marcantes entre os dois cenários inflacionários. Durante a hiperinflação, a relação é aproximadamente 70\\% menor do que a estimada sob inflação mais baixa. Níveis mais altos de inflação estão associados à maior variabilidade desta, mas a ligação é um pouco mais fraca durante o período de hiperinflação. O impacto de uma deflação (em termos absolutos) é menor do que o impacto de um aumento de preço durante a hiperinflação, porém mais forte durante níveis mais baixos de inflação. Finalmente, o terceiro capítulo documenta a importância do Plano Real sobre os custos de busca (search costs}) dos consumidores. Eu estimo um modelo de busca não sequencial por bens homogêneos para recuperar estruturalmente os custos de busca dos consumidores utilizando dados de preços sobre 15 marcas diferentes de bens e serviços. A estratégia empírica consiste em usar o Plano Real como um ponto de quebra estrutural nos dados. Eu estimo o modelo dividindo os dados entre antes (de janeiro de 1993 a junho de 1994) e depois (de agosto de 1994 a dezembro de 1995) do plano e encontro evidências de dominância estocástica de primeira ordem da distribuição do custo de busca do primeiro sobre o segundo período, ou seja, os custos de busca são maiores durante a hiperinflação. Eu também encontro evidências do efeito do plano na redução da margem de preço (markup) das empresas. Quando buscar preços é menos custoso, firmas perdem poder de mercado.

We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to instrument for potential endogeneity that might result from the selection of firms to certain product markets. We find that greater price adjustment costs result in greater price dispersion. Although the impact of price adjustment costs on price dispersion became weaker over time, the causal effect of price adjustment costs on price dispersion is still present at the end of the period. Our results are robust to many alternative empirical speciffications. We also test a range of alternative explanations of price dispersion, such as search cost, service differentiation, obfuscation, vertical restraints, and market structure. / Series: Department of Economics Working Paper Series

Este trabalho teve como objetivo geral: entender como as priorizações dadas aosstakeholders e o engajamento com mesmos podem refletir na presença de indicadores de sustentabilidade das organizações mineradoras no Brasil. Os objetivos específicos foram: revelar quem são osstakeholders priorizados e o por quê; e perceber qual a importância tem o engajamento com as partes interessadas na busca pelo desenvolvimento sustentável das mineradoras. Na fundamentação teórica foram abordados os principais conceitos da teoria de stakeholders, desenvolvimento sustentável, modelos e indicadores para mensurar o desenvolvimento sustentável e influenciadores do desempenho socioambiental. Dois estudos de casos foram realizados, tendo como fontes de dados: entrevistas em profundidade, relatórios oficiais, observação direta e a literatura. Os dados foram tratados conforme técnicas de análise de conteúdo e puderam evidenciar a priorização dada às comunidades locais e colaboradores. Todas as fontes de dados apresentaram indícios do tratamento diferenciado desses dois grupos de stakehoders. Os impactos causados às comunidades e colaboradores juntamente com o posicionamento estratégico e a necessidade de legitimidade para operar parecem ser os grandes impulsionadores da priorização apresentada. O engajamento com os grupos de partes interessadas ocorre desde o planejamento inicial das operações até o fechamento da mina. O contato permite o compartilhamento de boas práticas, o que pode contribuir para o desenvolvimento sustentável das mineradoras e grupos envolvidos. As empresas assumem responsabilidades perante os stakeholderse garantem ações que evidenciem os compromissos, inclusive o monitoramento das questões consideradas importantes por grupos salientes. Assim, os indicadores presentes refletem a priorização dada às comunidades e colaboradores bem como o engajamento contínuo com os mesmos. Os resultados podem contribuir com literatura ao apresentar novas formas de priorizar os stakeholders diferentes daquelas já consagradas na teoria. Isso sugere uma discussão da efetividade dos antigos modelos de priorização nos variados tipos de indústrias. Quanto à contribuição gerencial, o setor de mineração poderá encontrar subsídio para melhorar o relacionamento com os stakeholders em busca pelo desenvolvimento sustentável, algo essencial para perenidade desse setor cuja importância é significativa para a economia brasileira. / The objective of this study was to understand how the prioritizations given to stakeholders and the engagement with them can reflect the presence of sustainability indicators of mining organizations in Brazil. The specific objectives were: to reveal who are the prioritized stakeholders and why; realize the importance of engagement with stakeholders for the sustainable development of mining companies.Inthe backgroud, the main concepts of stakeholder theory, sustainable development, models and indicators to measure sustainable development and influencers of social and environmental performance were addressed. Two case studies were carried out, having as data-base: interviews, official reports, direct observation and the literature. The data were treated according to content analysis techniques and showed the prioritization given to the local communities and employees. All data sources showed evidence of differential treatment to these two groupsofstakehoders. The impacts caused to communities and employees, the strategic of the companies and the need for legitimacy to operate are the main drivers of the prioritization presented. Engagement with stakeholder groups occurs since the initial planning of operations to the closure of the mine. The contact allows the sharing of good practices, which can contribute to the sustainable development of the mining companies and groups involved. The companies assume responsibilities to the stakeholders and guarantee actions that evidence the commitments, including the measurement of issues considered important by salient groups. Thus, the present indicators reflect the prioritization given to the communities and employees as well as the continuous engagement with them. The results can contribute to literature by presenting new ways of prioritizing stakeholders different from those already established in theory. These are suggests for a discussion about the effectiveness of the established prioritization models in the various types of industries. Regarding the managerial contribution, the mining sector can find support to improve the relationship with the stakeholders for the sustainable development, that is essential for the continuity of this sector which has significant importance for the Brazilianeconomy.