Short Bio

I am currently an Assistant Professor of Economics and Wieler Family Assistant Professor in the Morrissey College of Arts and Sciences at Boston College in Chestnut Hill, MA, USA. My research interests are empirical applications in industrial organization and antitrust. I have particular interests in automobile markets and the welfare consequences of firms’ dynamic behavior.

curriculum vitae

Boston College Economics
324 Maloney Hall
Chestnut Hill, MA

Tel: 617-552-6026
Email: charles.murry@bc.edu
Web: charliemurry.github.io

Current Research

see research page for publications

Price Discrimination in International Airline Markets (Feb. 2021)
revisions requested from Review of Economic Studies
(with Gaurab Aryal and Jonathan W. Williams)
Summary: We estimate a model price discrimination and dynamic pricing of a monoply airline. The ability to screen passengers across cabins every period increases total surplus by 35% relative to choosing only one price per period, with both the airline and passengers benefiting. However, further discrimination based on passenger’s reason to traveling improve airline surplus at the expense of total efficiency. We also find that the current pricing practice yields approximately 89% of the first-best welfare. The source of this inefficiency arises mostly from dynamic uncertainty about demand, not private information about passenger valuations.

The Evolution of Market Power in the US Auto Industry (June 2021)
(with Paul Grieco and Ali Yurukoglu)
Summary: Markups in the U.S. automobile industry gradually decreased over the last 40 years, even though prices rose substantially. Consumer surplus rose dramatically mostly due to increases in product quality and improvements in marginal costs.

Inventory Management in Markets with Search Frictions (June 2021)
(with Fei Li, Can Tan, and Yiyi Zhou)
Summary: Inventory management can explain price dispersion because intermediaries/retailers adjust prices to manage inventory. We propose an equilibrium search model and calibrate it to data from the used car industry. Price dispersion generated from inventory management represents roughly 5 to 45 percent of observed price dispersion. A half of a car dealer’s value at facilitating search/matching is due to inventory management.
slides

Efficient Estimation of Random Coefficients Demand Models using Product and Consumer Datasets (May 2021)
(with Paul Grieco, Joris Pinkse, Stephan Sagl)
Summary: We propose a mixed-data likelihood estimator (MDLE) for a mixed logit demand system which makes use of product-level and consumer-level data while allowing for price endogeneity. The estimator is efficient compared to the GMM approach commonly used by applied researchers (e.g. Petrin, 2002; Berry, Levinsohn and Pakes, 2004). We show how to conduct inference on general functions of the model parameters, including elasticities. We benchmark our likelihood-based estimator to the GMM approach with a Monte Carlo exercise and find superior performance in finite samples.

Local Effects of Franchise Contract Regulations (March 2021)
accepted at Journal of Law and Economics
(with Peter Newberry)
Summary: States with laws that restrict franchisors from terminating franchise contracts have fewer franchises.

Market Structure and Competition in Airline Markets (Oct. 2020)
(with Federico Ciliberto and Elie Tamer)
Journal of Political Economy vol. 129, no. 11 (2021).
Summary: We develop a methodology to estimate static games of entry and pricing and quantify the price and product repositioning effects of an airline merger. We find that selection biases demand estimates, and product repositioning after a merger complicates merger analysis.