Does Service Bundling Reduce Churn?

We examine whether bundling in telecommunications services reduces churn using a series of large, independent cross sections of household decisions. To identify the effect of bundling, we construct a pseudo‐panel dataset and utilize a linear, dynamic panel‐data model, supplemented by nearest‐neighbor matching. We find bundling does reduce churn for all three “triple‐play” services. The effect is only “visible” during times of turbulent demand. We also find evidence that broadband was substituting for pay television in 2009. This analysis highlights that bundling helps with customer retention in service industries, and may play an important role in preserving contracting markets.     

Rent control according to Seinfeld

More than 30 years after its premiere, Seinfeld continues its run as a seminally popular television show. On October 1, 2021, five-year streaming rights to the show were purchased by Netflix for $500 million. Set in New York City, where rent control laws have a long history, several episodes of the show consider the trials of apartment living, including shortages, tastes for discrimination by sellers, bribery, search costs, and quality degradation. Seinfeld also illustrates the informal process through which rent-controlled apartments are advertised (e.g., less advertising under rent control shortage). This paper argues that popular media can be used as an effective pedagogical tool in learning. This paper analyzes four episodes of Seinfeld to help students identify and differentiate the very real costs of rent control. The paper also guides students to appreciate the difficulty in crafting a policy that is free of unintended consequences.     

Walk the talk: ESG mutual fund voting on shareholder proposals

Review of Accounting Studies - We document that U.S. mutual funds with investment objectives designated as “Sustainable Investment Overall” by Morningstar (ESG funds) are more likely...     

The price effects of greening vacant lots: How neighborhood attributes matter

We identify the effects of greening vacant lots on nearby housing prices and show how neighborhood attributes matter to these outcomes. Using data from a longstanding program in Philadelphia, we find that prices for houses within 1,000 feet of a greened vacant lot rise by about 4%, consistent with the literature, with the effect size increasing over time. Using the extensive data available in Philadelphia, we show how these effects vary by the attributes of the neighborhood in which they occur, with larger effects in areas with a high share of vacant land and higher-than-average median household incomes, with peak responses estimated at 19% and 15%, respectively. We demonstrate the importance of sample selection bias adjustment for identification of the effect of vacant lot greening.