Publications
"Competitive response to unbundled services: An empirical look at Spirit Airlines'' with Myongjin Kim and Qihong Liu, 2022, the Journal of Economics & Management Strategy.
"Subcontracting Network Formation among US Airline Carriers,'' with Georgia Kosmopoulou, 2021, the Journal of Industrial Economics.
"Sunk Capital, Fixed Cost and Entry Equilibrium," Review of Industrial Economics (Shandong), 2013, Vol. 4, 49-69. (A top Chinese journal in I.O.)
Working Papers
"Carry-on Baggage Fee: Duopolistic Price Discrimination with Homogeneous Product.".
With the assumption of firms competing in price with precommitment of quantities, the paper takes an approach of duopolistic third-degree price discrimination with homogeneous product to understand airlines' carry-on baggage fee decisions. In the theoretical model, two firms compete in both the high-end market (carry-on passengers) and the low-end market (non-carry-on passengers). A firm may use add-on pricing as a tool to distinguish passengers across markets and charge separate prices. The theoretical results suggest that the adoption of a carry-on baggage fee is caused by the decrease in the willingness to pays or the fraction of non-carry-on passengers, which can be reflected by the decrease in the skewness of airline ticket price distribution. With panel regression and survival analysis, I find a negative relationship between price skewness and the adoption of carry-on baggage fee and provide some evidence supporting the theoretical results. The intuition behind these findings is also provided.
"Network Effects, Competition and Survival of Small and Minority Owned Firms in Public Procurement,'' with Georgia Kosmopoulou, Xueqi Zhou and Nancy Alexander.
In this paper, we evaluate how network opportunities of small and disadvantaged businesses are affected by the opportunities in the subcontracting market, and the resulted impact on bidding outcomes and firms' longevity in the industry. We collect fifteen years of data on all subcontracting activities from public procurement auctions in Oklahoma, and use Bayesian estimation methods to accommodate the dynamic effect of past connections on future links. Focusing on the connections formed through subcontracting relationships, we look at various network homiphily features such as distance between contractors, common Disadvantage Business Enterprise (DBE) status, and job specialization similarity and complementarity, affect a firm's networking potential and business activities. We provide evidence that the network structure among contractors is an important factor in explaining firms' participation and bidding patterns.
Work in Progress
"An Attempt to Understand Money, Business Cycle and Growth with a Theoretical Microeconomic Model".
"Determinations of Film Box-Office: The Network Analysis on Film Makers," with Georgia Kosmopoulou and Yue Wu.
"Networks and Joint Bidding Behaviors,'' with Dakshina De Silva, Georgia Kosmopoulou, and Mike Tsionas.
"Network Dynamics in the U.S. Airline Industry," with Kasra Khademorezaian, Myongjin Kim, and Georgia Kosmopoulou
"Airlines' Route Networks, Pandemic and Subcontracting,'' with Kasra Khademorezaian, Myongjin Kim, Georgia Kosmopoulou, and Qihong Liu.