PH.D Research
Distributor Consolidation and Prices: Evidence from the US Energy Drinks Market
Oscar Jara – 2023 [Job Market Paper]
Abstract
Contractual arrangements between upstream and downstream firms may involve different geographic markets, depending on the coverage of each one. In this paper, I show that a con- solidation between upstream firms operating in different geographic markets can generate price effects. To observe this outcome, the region specific wholesale price must be negotiated simultaneously across all regions and not independently region by region. I refer to these approaches as multi and single market bargaining, respectively. Under multi-market bargaining, the expansion of a distributor into new regions, all else being equal, generates price effects in both new and legacy regions. To empirically explore these effects, I study the consolidation of distributors in the U.S. energy drinks market. Post-consolidation, reduce form evidence shows that national retailers decreased their prices in every region; indicating that negotiations are multi-market. Then I build a structural model of multi-market bargaining, revealing that distributors rely more on retailers than retailers rely on distributors. This caused the decrease in distributors’ bargaining position that lead to reduction in retail prices.
Market Structure, Entry and Product Characteristics: Evidence from the Peruvian Mobile Telecommunications Market
Oscar Jara, Nicolás Martinez – 2023 [Draft available upon request]
Abstract
In oligopolistic markets, multiproduct firms differentiate their product offerings just enough to prevent cannibalization of their own sales and to avoid creating gaps in the product space that could be profitably filled by new entrants. As technological progress makes entry less expensive, new firms can enter the market with differentiated product offerings. However, this makes also releasing more products to the incumbents less expensive. In this paper we investigate how much of the variation in incumbents’ product offerings is coming from increased competition and how much from technological change. To answer this question, we use novel data to study the entry of 2 firms to the 2 incumbents Peruvian Mobile Telecommunications Market. We find preliminary evidence that incumbents started offering more plans with higher variation in the number of minutes and gigabytes offered after entry, but it is not clear which part is coming from technological constraints or lack of competition between incumbents. To disentangle these effects, we develop a structural model. Our results highlight the importance of reducing factors different from entry cost that delay entry, like municipal permits.
Pre PH.D Research
Social benefits of rural electrification
Oscar Jara, Roberto Urrunaga, José Luis Bonifaz, Julio Aguirre, Gisella Aragón – 2013
Technical efficiency on Peruvian water supply providers
Oscar Jara, Roberto Urrunaga – 2012
Oscar Jara 