Essays On the Impact of Competition Policies in the United States

Abstract

The research topics of my dissertation focus on studying the impact of three competition policies in the United States – used car lemon laws, Apple’s alternative iPhone financing policy, and net neutrality rules. The results of my research work in this regard have aimed to contribute to the existing body of knowledge in these areas. I found evidence that, the implementation of the alternative payment plan induced competition in the wireless communication industry and resulted in a reduction in average plan price – the carrier’s average revenue per user fell by 5.9%. Also, my results reveal that the absence of net neutrality leads to a decrease in both maximum and average download speeds of 39.5 and 68.14, respectively, and increases average monthly charge by $9.53. A decrease in download speed (quality) contradicts the argument that the absence of net neutrality will incentivize ISPs to increase investment which will intend improve the quality of internet service to the end-users. Lastly, my results affirm the theoretical assertion of warranty provision as a remedy to information asymmetry in a secondary market. I found evidence that warranty provision, by reducing transaction cost, positively influence demand for used cars in the United States.