My research is on industrial organization and competition policy (antitrust). You can learn more about me and my work by downloading my CV, checking the papers below, or visiting my Google Scholar profile. I am also a PADI Divemaster on active teaching status. You can find me helping with scuba lessons from time to time.
The 2020 Vertical Merger Guidelines assume that the elimination of double marginalization caused by vertical integration is procompetitive. We analyze equilibrium effects of vertical integration to shed light on when EDM may fail to be procompetitive in multiproduct industries. Diagnosing Anticompetitive Effects of Vertical Integration by Multiproduct Firms code | doi | Review of Industrial Organization, 59 (2): 381-92.
Reducing uncertainty about future wholesale prices may reduce firms' incentives to coordinate, and it reduces these incentives the most in markets with stronger leaders. Price Leadership and Uncertainty about Future Costs doi | Journal of Industrial Economics, 69 (2): 305-37.
Vertical mergers by multiproduct firms raise anticompetitive pricing incentives. We call this the Edgeworth-Salinger effect and show that it counteracts procompetitive effects of vertical mergers. We call for the E-S effect to be explicitly considered in antitrust enforcement. The Competitive Impact of Vertical Integration by Multiproduct Firms slides | Microeconomic Insights | doi | American Economic Review, 110 (7): 2041-64.
Heterogeneity in strategic sophistication may lead to inefficient market outcomes and high prices even without exploitation of market power. Mergers between heterogeneous firms may, however, improve efficiency even if they increase concentration and do not generate cost synergies. Does Strategic Ability Affect Efficiency? Evidence from Electricity Markets slides | doi | American Economic Review, 109 (12): 4302-42.
Switching costs induce inertia in consumer behavior and often result in consumers paying high prices. Understanding what causes them informs policy design and may induce more intense competition between firms. Switching Costs and Competition in Retirement Investment doi | AEA Research Highlights | American Economic Journal: Microeconomics, 11 (2): 26-54.
Information disclosure may increase or decrease the intensity of competition and it may have important distributional effects. Who Benefits from Information Disclosure? The Case of Retail Gasoline doi | American Economic Journal: Microeconomics, 11 (2): 277-305.
In the context of Hurricane Harvey, we show that stores that exit due to storm damage generally contribute less to welfare than new entrants and surviving incumbents. However, because some impacted firms contribute significantly to welfare, we show that a targeted aid program could generate substantial gains. Rebuilding After the Storm: Firm Turnover and Consumer Welfare After Hurricane Harvey slides |pdf | Under review.
Revenue-sharing agreements are common in supply chains but can cause inefficiencies and reduce downstream competition. Using variation in vertical structure, we identify the terms of an RSA and quantify its impact on market outcomes relative to vertical integration. The Cost of an Inefficient Vertical Contract pdf | Under review.
We develop a methodology to transform foot traffic data from mobile phones into a measure of consumer spending. We illustrate its use quantifying local fiscal multipliers at the zipcode level. We show that these multipliers are highly localized, decay quickly in space, and are heterogeneous across store categories. Measuring Local Consumption with Payment Cards and Cell Phone Pings pdf | Resubmitted.
Mobile apps collect real-time location data, which may be used to predict consumers' future behavior. However, using these data may be perceived as violating users' privacy. We show that these data are helpful when predicting consumers' future retail visits, even when their collection and use are restricted in specific ways. Privacy and Prediction: How Useful are Geo-Tracking Data for Predicting Consumer Visits? pdf | Resubmitted.
Product Bans as Protectionism: The Maggi Scare
Quantifying Foreclosure: The Live Nation and Ticketmaster Merger
Antitrust (undergraduate)
Data Science (undergraduate)
Industrial Organization (graduate)
TAMU IO Day: Fall 2021, Fall 2022, Fall 2023, Fall 2024.
Interested in scuba diving? If you are in Aggieland, make sure you visit Aggieland Scuba. You may find me there, or helping with classes at the pool or the lagoon! In the meantime, check this cenote dive, or our family dive in Cozumel.
E-mail: fluco [at] tamu [dot] edu Website: This site is built on Tufte CSS.Other