Home » JEL Codes » L » L2

Category Archives: L2

Regulatory Uncertainty: The Impact of the 2015 Open Internet Order on Broadband Infrastructure Investment

By Dane Bourcy Burkholder and Chin Jie Lim

This paper analyzes the impact of the United States Federal Communication’s (FCC) March 2015 Open Internet Order (OIO) on broadband infrastructure investment outcomes such as changes in speed of services, market entry. We find that higher broadband investment levels deter potential entrants and may weed out competition amongst incumbent ISPs from December 2014 to December 2016. The 2015 OIO appears to have negatively impacted the probability of an ISP entering a census block for the first time by 7.17% during any six-month time periods from June 2015 to December 2016 compared to the time period from June 2010 to December 2014.

View Thesis

Advisor: Dr. Michelle Connolly | JEL Codes: D21, D25, D42, L20, L50, L96

The Effect of Social, Cultural, and Political Values on Entrepreneurial Perceptions and Venture Creation: A Global Investigation

By Repton Salisbury

The effect of entrepreneurial activity on economic development has been researched thoroughly. New firm creation spurs economic growth by creating employment opportunities, cultivating innovation, and encouraging competition. Globally, there are countless areas that could benefit from a livelier entrepreneurial ecosystem. So how does a government or population first spur entrepreneurial activity? An entrepreneur’s perceptions are among the most powerful factors that impact the life or death of a new venture, but the determinants that influence how these perceptions first form are still largely unknown. Using survey data collected by the Global Entrepreneurship Monitor in 2010 across the United States, Japan, Switzerland, Israel, United Kingdom, Peru, Russia, Iran, and China, I conduct binary logistic regressions of individual level characteristics, social ideals, cultural norms, human development, and other environmental attributes on the most important perceptions of entrepreneurs. These perceptions have been identified by previous research as an entrepreneur’s perception of local opportunities, internal skills, and fear of failure in creating a new venture. I find that several social, cultural, and political values have a significant effect on the psychological behavior of nascent entrepreneurs.

View Thesis

Advisor: Alison Hagy, Grace Kim | JEL Codes: L2, L26, O17 | Tagged: Culture, Entrepreneurship, Perceptions, Venture Creation

How does being a Serial Creator affect Probability of Campaign Success on Kickstarter?

By Minn Khine

This paper seeks to address the issue of how being a serial creator impacts campaign success on Kickstarter. My hypothesis is that being a serial creator – someone who has created 2 or more projects on Kickstarter – has a positive effect on probability of campaign success but there are diminishing marginal returns to this effect. A regression analysis over a sample of over 187 thousand Kickstarter projects from its inception in 2008 until December 2014 yields the following findings, which supports my hypothesis. I found that being a serial creator does have a positive effect on campaign success but there is diminishing marginal returns to being a serial creator. Furthermore, number of updates, number of reward levels, having a video, number of backers, FB Shares, FB Friends, and Number of Projects Backed all have positive effects on campaign success. On the other hand, comments, funding goal, and duration have negative effects on campaign success. The effect of the Fed Fund Rate on campaign success is inconclusive. In terms of how project characteristics and creator characteristics affect first time creators and serial creators differently, I found that Updates, Video, FBShares, FBFriends, and Goal matter less as number of projects created increases, in other words, for serial creators who’ve gathered more project experience. On the other hand, Rewards, Backers, ProjectsBacked, Comments, and Duration matter more as number of projects created increases.

view thesis

Advisor: Edward Tower, Grace Kim | JEL Codes: G21, G24, L26 | Tagged: Crowdfunding, Kickstarter, Serial creator

The Determination of Newspaper Slant in Small Markets

By Jordyn Gracey

This paper takes the assertion, made by Gentzkow et al., that newspaper slant is primarily determined by slant as given. Both that paper and this one use Hotelling as a foundation. However, this paper considers what happens when the distribution of ideological preferences differs at national and county levels. This paper controls for the size of the market in which the newspapers are operating as well as for the make-­‐up of the county-­‐level population. Findings show that demand is a robust determinant of slant across market sizes and that supply-­‐side factors rarely have significant impact on slant. In the two cases where ownership does have an effect on slant, it is in regressions where the largest-­‐circulating newspapers have been dropped. We determine that if ownership is important it is when control is more centralized,if a newspaper is operating in a small market or if the owner chooses the slant before deciding which market to enter.

Honor’s Thesis

Data Set

Advisor: Michelle Connolly | JEL Codes: L2, L21, L4, L22, L25, L44, Y8 | Tagged: Firm Behavior, Conglomerates, Product Strategy

Price Discrimination and Bargaining Power in the Global Vaccine Market

By Linda Li

Since the 1980’s, the market structure of vaccines has become increasingly oligopolistic, and in some cases monopolistic. Alongside these supply trends, we see the emergence and growth of group procurement schemes on the demand side of the market. National government and international organization procure vaccines on behalf of end users. Two such organizations include the UNICEF Supply Division and the PAHO EPI Revolving Fund, for which participation is based on income or geography. Consistent with one of the main goals of group procurement, these groups obtain price discounts on vaccines relative to the private sector. This paper seeks to disentangle two possible explanations for this observed price dispersion using vaccine price data over the years 2002-2012 from UNICEF, PAHO, and the U.S. The two explanations are that of price discrimination and bargaining power. Using proxy variables in a fixed effects model, I find that price discrimination does have a significant impact on price discount. I also find support for a bargaining power effect, however with less certainty, and the existence of supply constraints. These findings have important policy implications for national governments, as well as procurement groups.

View Thesis

Advisor: David Ridley | JEL Codes: I11, I18, L22 | Tagged: Bargaining Power, Group Procurement, Price Discrimination, Vaaccines

Empirical Evidence of Airline Merger Waves Based on A Selective Entry Model

By Peichun Wang

Ever since the Deregulation Act in 1978 in the U.S. airline industry, there have been series of major airline mergers and acquisitions, notably three major waves in the 1980’s, 1990’s, and late 2000’s. These mergers, especially the more recent multi-billion mergers (e.g. Delta- Northwest, United-Continental) have shown a trend of substantial market consolidation that inevitably worries consumers as well as the U.S. Department of Justice (DoJ). Most academic literature to date have tried to study mergers in a static setting where these mergers are assumed to be exogenous. However, the clear pattern of merger waves in the airline industry, as well as many other industries, suggests strong correlation between mergers. A few studies that attempted at a dynamic merger model remain theoretical due to computational barriers. In this paper, I found empirical evidence of merger waves by investigating the change of airline carriers’ incentive to merge after another merger between two other carriers. These results are based on a structural model of the U.S. airline industry, in which I estimate demand with a standard (for dierentiated product markets) discrete-choice nested logit model, but allow for selection on entrants’ costs and qualities, i.e. rms with lower costs and higher qualities would have been selected into the market before the merger, suggesting that post-merger entry is less likely than what non-selective entry models have predicted.

View Thesis

Advisor: James Roberts | JEL Codes: L13, L25, L93 | Tagged: Airline, Merger Wave, Selective Entry


Undergraduate Program Assistant
Jennifer Becker

Director of the Honors Program
Michelle P. Connolly