Daniel Herrera-Araujo
About Me
I received my Ph.D. at Toulouse School of Economics in 2015.
I am an Assistant Professor in Economics at Université Paris-Dauphine since 2018.
I am interested in topics dealing with Empirical industrial Organization, Health Economics and Environmental Economics.
Here is one of my on-going works
The effects of banning loss-leader pricing in grocery retailing markets
(joint with Jorge Florez)
This paper explores the effects of banning loss-leader pricing in grocery retailing markets. To this end, we carry out two empirical exercises. First, we obtain reduced-form evidence on the effect of banning loss-leader pricing on price levels using data on purchases of a number of products widely used by supermarkets as loss-leaders. As half of the states in the US ban loss-leading practices, we exploit a border strategy estimation along with expected changes in demand to identify the effect of banning loss-leading on average prices. Second, we structurally model competition between supermarkets to capture the effects of the ban on optimal pricing. Our empirical strategy relies on a novel approach for demand estimation that allows us to work with a reduced set of products, while still correcting for the biases generated by such restricted choice set.