Investigator: Chen Nan.
In the age of market digitalization, competition becomes increasingly dynamic. Airlines adopt sophisticated revenue management systems that enable real-time price adjustments. Small online sellers have access to automatic pricing tools that enable constant monitoring and repricing at minimal cost.
Would these new technologies influence the way firms compete? If so, would consumers benefit or not?
To answer these questions, we collect a large high-frequency data set from the internet. Using econometrics and machine learning methods, we examine how online sellers compete dynamically and how real-time competition affects market equilibrium. We highlight the implications of information technology in competitive markets. These insights will be valuable to consumers, online sellers as well as policy makers.
“Perishable Good Dynamic Pricing under Competition: An Empirical Study in the Airline Markets”. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3228392