Mian Dai
Assistant Professor of Economics
Department of Economics and International Business
Contact Information:
Mian Dai
3600 Market Street, 7th Floor
Philadelphia, PA 19104
215-895-2536
Mian.Dai at Drexel dot edu
Research Interest: Industrial Organization, Applied Microeconomics, Applied Econometrics
Education:
Ph.D. Managerial Economics and Strategy (2008)
Kellogg School of Management, Northwestern University
Dissertation Committee: Shane Greenstein (chair), Mike Mazzeo, Justin Lenzo
B.S. Economics and Computer Science (2003)
California Institute of Technology
Adviser: Kim Border
Working Papers:
Is the Effect of Competition on Price Dispersion Non-monotonic? Evidence from the U.S Airline Industry (Joint with Qihong Liu and Kostas Serfes), 2012 (Conditionally Accepted by Review of Economics and Statistics)
Abstract: We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to 2008, we find a non-monotonic effect of competition on price dispersion. An increase in competition is associated with greater price dispersion in concentrated markets but it is associated with less price dispersion in competitive market (i.e. an inverse-U relationship). Our empirical findings are consistent with an oligopolistic second-degree price discrimination model and reconcile seemingly contradicting findings in the literature.
Specialization
and Differentiation in the Out-patient Dialysis Market (This draft: May,
2012)
Abstract: Using a dataset of dialysis facilities operating in more than 1,000 U.S. counties in 2007, we examine the competition between two types of firms: multiproduct dialysis facilities and single product dialysis facilities. We simulate the effect of a Medicare policy proposal in 2008 which reduces the regulated price for a common product that is produced by both types. We find that the policy decreases the number of single product dialysis facilities but increases the number of multi-product facilities. We also find strong evidence for market segmentation between single product and multiproduct dialysis facilities. The estimates imply the cross-product subsidization within the multiproduct dialysis units.
Product Differentiation and Inefficiencies in the Retail Banking Industry (Joint with Yuan Yuan), 2011, (under major revision)
Abstract: Economic theory has predicted that the market can sometimes deliver inefficient outcomes. This paper empirically quantifies the welfare loss under free entry in the retail banking industry between 2000 and 2004. A distinctive feature of our empirical framework is to predict the operating decision of single-market and multi-market banks using an equilibrium product type choice model. Our findings suggest an average welfare loss of 11%-13% under free entry and substantial cross-sectional variations. Compared to 2000, the average total surplus drops by almost 50% in 2004 while the distribution of banks and surplus is closer to optimality.
Work in Progress:
Revenue Comparisons in Multi-unit
Auctions: An Empirical Analysis of PJM Data (Joint with Jeremy Lin and Xun Tang)
Useful Resource:
Free Geocoder from USC https://webgis.usc.edu/