Meghan R. Busse

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  • BARRY NALEBUFF, Kyle Bagwell, +6 authors Michael Rior
  • 2004
In this paper we look at the case for bundling in an oligopolistic environment. We show that bundling is a particularly effective entry-deterrent strategy. A company that has market power in two goods, A and B, can, by bundling them together, make it harder for a rival with only one of these goods to enter the market. Bundling allows an incumbent to(More)
We investigate whether car buyers are myopic about future fuel costs. We estimate the e↵ect of gasoline prices on short-run equilibrium prices of cars of di↵erent fuel economies. We then compare the implied changes in willingness-to-pay to the associated changes in expected future gasoline costs for cars of di↵erent fuel economies in order to calculate(More)
The U.S. government, media, and flying public have expressed great concern in recent years over both airline market concentration and flight delays. This study explores potential connections between the two by examining whether the lack of competition on a particular route results in worse on-time performance. Analysis of data from the U.S. Bureau of(More)
This paper shows how firms’ pricing and communications strategies may be affected by size of the Internet: firms have incentives to facilitate consumer search on the Internet, but only as long as the Internet's reach is limited. As the Internet is used by more consumers, firms’ pricing and communications strategies on the Internet will mirror the strategies(More)
Voluntary Standard Setting Organizations (SSOs) use a consensus process to create new compatibility standards. Practitioners have suggested that SSOs are increasingly politicized, and perhaps incapable of producing timely standards. This paper develops a simple model of standard setting committees and tests its predictions using data from the Internet(More)
Government policies increasingly promote ethanol for security, air quality, and climate benefits. I develop a model that links household preferences for ethanol as a gasoline substitute to aggregate price responses. I estimate the model using data from many retail fueling stations. Ethanol demand is sensitive to relative fuel prices with a mean elasticity(More)
Federal, state and local governments use a variety of incentives to induce consumer adoption of hybrid-electric vehicles. We study the relative efficacy of state sales tax waivers, income tax credits and non-tax incentives and find that the type of tax incentive offered is as important as the value of the tax incentive. Conditional on value, we find that(More)
A firm that knows that cutting price may trigger a price war must weigh present versus future gains and losses when considering such a move. The firm’s financial situation can affect how it values such tradeoffs. Using data on 14 major airlines between 1985 and 1992, I test the hypothesis that firms in worse financial condition are more likely to start(More)