- Applied Econometrics
- Applied Microeconomics
- Economics of Telecommunications Networks
- Industrial Organization
Dr. Michael Kummer joined Georgia Tech as an Assistant Professor of Economics in August 2015. His research interests focus on the generation of user generated content in networks, the structure of online markets, as well as the interaction of firms and consumers online.
Previously, Dr. Kummer was a postdoctoral researcher at the Centre for European Economic Research (ZEW) in Mannheim, Germany. Joining ZEW in 2009, he was in the ZEW Doctoral Studies Network Program (DocNet) and obtained his PhD from the University of Mannheim in September 2014. Prior to earning his PhD, Kummer studied Economics at the University of Vienna, obtained his M.S. in Mathematical Economics from the Toulouse School of Economics, and was a research assistant at the Johannes Kepler University, Linz.
Journal Article – May 2014
We analyze the interaction between market structure and market performance and how it varies over the product cycle. To account for the potential endogeneity in this relation, we use an instrumental variable approach. We combine data from the largest Austrian online market for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. Our results show that instrumenting is important for estimating the empirical effect of competition on the markup of the price leader. One more firm in the market is associated with a reduction of the price leader׳s markup which is equivalent to competition between existing firms for an additional 3 weeks in the product life cycle. Our results support search theoretic models and contradict models of monopolistic competition. Moreover our results support the existence of price dynamics over the product cycle. They also highlight the substitutability between newly innovated and old expiring technologies and how it varies with respect to competitors׳ and own brand innovations.
Hackl, Franz, Michael E. Kummer, Rudolf Winter-Ebmer, and Christine Zulehner. "Market Structure and Market Performance in E-Commerce." European Economic Review 68.2 (2014): 199-218.
Journal Article – March 2014
Setting prices ending in nines is a common feature of many markets for consumer products. This prevalence has been explained either by a specific image of such price points or by the exploitation of rational inattention on the part of the consumers who want to economize on the cost of information processing. We use data from an Austrian price comparison site and find a remarkable prevalence of such price setting. Prices ending with nine are also sticky: price-setters change them with a significantly lower probability; rivals underbid these prices more seldom if they represent the cheapest price on the market, and we observe higher price jumps by price leaders for these price points. Finally, we explore the impact of these price points on the consumers’ demand.
Hackl, Franz, Michael E. Kummer, and Rudolf Winter-Ebmer. "99 Cent: Price Points in E-Commerce." Information Economics and Policy 26 (2014): 12-27.