ESSAYS IN INDUSTRIAL ORGANIZATION

This dissertation studies several topics in industrial organization, focusing on consumer behavior, market power, and policy interventions across markets. The first essay examines state dependence in smartphone choices, an issue central to the recent antitrust case between the Department of Justice and Apple. Using a consumer panel survey, I develop and estimate a dynamic demand model in which consumers jointly choose smartphones and smartwatches, incorporating switching costs, ecosystem complementarities, and installment contracts. The results show that switching costs contribute to persistence, though product characteristics, prices, and consumer preferences also play important roles. The second essay evaluates whether state-imposed behavioral remedies can substitute for federal antitrust enforcement in hospital mergers. I study Certificates of Public Advantage (COPAs), which allow hospital mergers to proceed under state supervision with federal antitrust immunity. Comparing COPA-regulated and unregulated mergers using hospital data from 1996 to 2022, I find that COPA mergers exhibit lower price growth but worse quality outcomes, suggesting such regulation may not effectively replace traditional antitrust enforcement. The third essay studies the welfare effects of the 2019 Korean boycott of Japanese automobiles. Using vehicle registration data, I find substantial losses for Japanese brands and gains for competing firms, with consumer surplus losses varying across demographic groups. These findings highlight how political consumer behavior can generate significant redistribution in product markets.