Research Papers
Below is a list of my research projects.
Works in Progress
Network Effects vs. Market Power: Evidence from the Internet Service Market
with Marc Rysman
Abstract: When two prominent Internet Service Providers (ISPs) merge, they could either leverage the increased efficiency and attract more customers or act on the increased market power, which could drive away customers. This is the first economics paper to empirically study the effect of a merger between two Tier-1 ISPs. Using the Center of Applied Internet Data Analysis (CAIDA) data, we observe connections between ISPs, from which we could infer the underlying contracts. We examine how internet connectivity changed following the horizontal merger between Level 3 and CenturyLink. Using a difference-in-difference design, we find that the number of customers of the merged firm CenturyLink-Level 3 decreased by 26% compared to the control firms. Post-merger, the merged firm gained 4% fewer new customers and lost smaller customers than the control firms.
Spatial Competition between the Internet Data Centers
Abstract: My goal is to examine how Internet service providers (ISPs) choose data centers for interconnection and uncover how much they value proximity, prices, the presence of major providers. I will also model spatial competition between data centers and uncover the cost parameters. Finally, I will explore optimal distribution by comparing the current market-driven distribution with a hypothetical scenario optimized for total welfare.
The Making of a World Champion: How Much Does Individual Talent Matter in Formula One Racing?
Abstract: When we consider a person to be of world-championship caliber, is it purely attributable to their exceptional talent, or is it because they have the fortune of steering a championship-winning car? Most likely, success results from a combination of both factors. But the intriguing question remains: to what extent does individual talent matter? How has that changed over time since the introduction of Formula One as the car technology and safety standards have improved significantly? Who is the fastest driver judging from driving skills only? My goal here is to decompose driver fixed effects, team fixed effects, and match fixed effects in the Formula One race results under the AKM framework.