Researcher:
Güler, Ali Umut

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Faculty Member

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Ali Umut

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Güler

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Güler, Ali Umut

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Now showing 1 - 4 of 4
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    Publication
    Inferring the economics of store density from closures: the Starbucks made
    (Informs, 2018) Department of Business Administration; Güler, Ali Umut; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 143349
    This paper proposes a method that makes use of firms' mass store closures to measure the store network effects of cannibalization and density economies. I calculate each store's contribution to chain-level profits via one-store perturbations on the set of retained stores, and map these onto the firm's closure choices. To separate the demand and supply-side store network effects, I exploit the fact that the business-stealing effect intensifies with local network density, whereas the supply-side disadvantage prevails at sparse regions of the network. I apply the method to study the Starbucks chain. The average rate of cannibalization imposed by a neighbor outlet is 1.2% within one mile and 0.4% within one to three miles. For remote outlets, operation costs increase by 0.3% of revenues for each mile of distance from the network. Counterfactual analyses suggest that income level is a more important determinant of demand than population count at low levels of store penetration, whereas high-population regions can sustain denser store networks because of the softening of the cannibalization effect.
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    Publication
    Seasonal price effects of mergers
    (Elsevier Science Sa, 2021) Department of Business Administration; Güler, Ali Umut; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 143349
    This study shows that mergers' price effects can vary seasonally. I document countercyclical price increases due to the Coors and Miller merger, which is consistent with models of coordinated pricing that predict lower equilibrium prices during high-demand states. (c) 2021 Elsevier B.V. All rights reserved.
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    PublicationOpen Access
    Heterogeneous price effects of consolidation:evidence from the car rental industry
    (The Institute for Operations Research and the Management Sciences (INFORMS), 2020) Misra, Kanishka; Singh, Vishal; Department of Business Administration; Güler, Ali Umut; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 143349
    We study the price effects of consolidation in the car rental industry using three cross-sections of price data from U.S. airport markets spanning the years 2005 to 2016. The auto rental industry went through a series of mergers during this period, leading to a significant increase in market concentration. We find that the concentration of ownership affects the business (weekday) and leisure (weekend) segments differently. Average weekday prices rose by 2.1% and weekend prices fell by 3.3% with the increase in market concentration. Given the periodic differences in demand from business and leisure travelers, we explain this finding with a model of horizontal product differentiation that allows for heterogeneity in customer types and firms’ marginal costs. Consolidation leads to marginal cost savings, but the extent to which these savings are passed onto different customer types depends on the magnitude of switching costs. In particular, weekday customers with high switching costs are charged higher prices because of suppliers’ augmented market power whereas the more price-sensitive weekend segment enjoys the lower prices facilitated by efficiency gains. Our findings highlight that consolidation can have differential welfare effects on different customer groups and merger analyses should account for the heterogeneous impact based on firms’ price discrimination practices rather than just considering average effects.
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    PublicationOpen Access
    Household demographics and preference for organic products in seven major food categories
    (Anadolu Üniversitesi, 2022) Department of Business Administration; Güler, Ali Umut; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 143349
    Amid increasing health concerns about industrially processed packaged consumer products, demand for organic products has risen in recent decades. Using rich panel data on food purchases of more than 60 thousand U.S. households, this study examines consumer profiles of organic products in seven major food groups with the aim of identifying household characteristics that predict preference for organic product options. The results of the regression analyses show that demand for organic products increases with income and education level. The preference for organic products is higher in younger households and peaks in the 30-34 age group, while it decreases in large households with more than four members. At the same time, the results show that consumption of organic products increases in households with a young child, especially in categories that typically form an important part of a young child's diet, such as eggs and dairy products. These results suggest significant nonlinearities in the effects of age and household size, as well as differences in the effects of demographic variables by product category, that should be taken into consideration in the marketing of organic products. / Endüstriyel olarak işlenmiş tüketici ürünleriyle ilgili sağlık endişelerinin artmasıyla birlikte, yakın dönemde organik ürünlere olan talep artmıştır. Bu çalışma, organik ürün tercihini belirleyen hanehali demografik özelliklerini ortaya koymak amacıyla, 60 binin üzerinde ABD hanehalkının gıda alımlarına ilişkin verişini kullanarak, yedi ana gıda grubu temelinde organik ürünlerin tüketici profillerini incelemektedir. Regresyon analizlerinden elde edilen sonuçlar, organik ürünlere olan talebin gelir ve eğitim düzeyi ile arttığını ortaya koymaktadır. Organik ürün tercihi genç hanelerde daha yüksek olup, 30-34 yaş grubunda en yüksek seviyeye çıkmakta, buna karşın dört ve daha çok birey içeren geniş haneler için düşüş göstermektedir. Küçük çocuklu evlerde, özellikle yumurta ve süt ürünleri gibi tipik olarak çocuk beslenmesinde önemli yeri olan gıda kategorilerinde organik ürünlerin payı artmaktadır. Bu bulgular, organik ürün pazarlamasında, demografik etmenlerde yaş ve hanehalkı büyüklüğüne göre ve ürün kategorisine göre oluşabilen tercih farklarının gözönünde bulundurulması gerektiğine işaret etmektedir.