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Theses

Essays on competition policy and applied econometrics

Abstract : This thesis includes three articles on the subject of competition policy along with an econometric contribution. Regarding the former, the two first articles focus on the relationship between antitrust enforcement and the labor market. The first measures levels of labor market concentration in France (2011-2015) through the Herfindahl–Hirschman Index (HHI) defined over local labor markets. We find a negative relationship between labor market concentration and both wages and employment. This suggests the existence of oligopsonistic and monopsonistic labor market power on behalf of employers ; potentially resulting from and influenced by competition policy. The second article quantifies the importance of antitrust laws in protecting workers’ wages. We look at a mechanism allocating American baseball players, in a quasi-random way, to a competitive labor market from a highly monopsonistic market ; the difference resulting from the application of antitrust laws. We find such laws allow wages to increase by at least 30%. A third article looks at the need for regulatory oversight in the mobile phone video game industry. Exploiting both quasi-natural variation stemming from the game’s structure and artificially induced variation from a Randomized Controlled Trial (RCT), we estimate demand for content on behalf of consumers using a discrete choice model. We use this model to simulate alternative pricing schemes, including individual level pricing, in order to study the potential for additional profits. We find limited evidence that higher profits can be obtained through price discrimination. Rather, revenues could be improved through a lower fixed price ; suggesting the absence of a need for regulatory oversight. Finally, this thesis includes a methodological contribution. This fourth article discusses the problem of zeros in log-linear and log-log regressions when the analyst is interested in measuring a semi-elasticity or an elasticity ; as is commonly done in empirical industrial organization, labor economics, international economics, development economics, and health economics. We show this issue to be highly relevant by measuring its relevence in the works of recent publications in the American Economic Review. We not only explain this issue, we also develop a new approach called « iterated Ordinary Least Squares ». The latter is more flexible in terms of moment conditions and easier to estimate, in particular in the context of endogenous regressors, than the more classical solution consisting in Poisson regression. Using a new statistical test based on comparing the empirical pattern of zeros in the data with the ones implied by moment-based models, we show that our model can sometimes be favored in comparison to other classical solutions, as shown by revisiting recent publications from the fields of international trade and development..
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Submitted on : Tuesday, May 17, 2022 - 4:42:25 PM
Last modification on : Wednesday, June 15, 2022 - 3:26:50 AM

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Louis Pape. Essays on competition policy and applied econometrics. Statistical Finance [q-fin.ST]. Institut Polytechnique de Paris, 2022. English. ⟨NNT : 2022IPPAX025⟩. ⟨tel-03670753⟩

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