The co-authored paper by Professor Dun Jia from HSBC Business School was officially accepted by the American Economic Review

Recently, the paper Dynamic Price Competition, Learning-By-Doing and Strategic Buyers by Professor Jia Dun from the HSBC Business School of Peking University and his collaborators was officially accepted by the top international economics journal American Economic Review and will be published soon
.

" The American Economic Review " ( AER ) was founded by the American Economic Association (AEA) in 1911.

The goal of maximizing market efficiency often faces the contradiction between the centralized production of a single high-efficiency manufacturer or the decentralized operation of multiple manufacturers to maintain the market competition mechanism
.

Professor Jia Dun and his collaborators modeled the demand side that has been neglected for a long time in the classic framework, and introduced "strategic and forward-looking" consumers, that is, consumers can choose which manufacturer to obtain products from for consumption.
Indirectly dynamically balance the operating efficiency of different companies, thereby maximizing their long-term utility
.

The research has important theoretical contributions and rich practical significance:

1.
The study found that even if there are a small proportion or even a low level of strategic consumers, the unavoidable multiple equilibrium problems in the classic manufacturer’s dynamic pricing framework are no longer significant.
In particular, market monopoly equilibrium can be eliminated, and market extremes With a high probability, a fully competitive equilibrium result can be achieved in the medium and long term
.

2.
The research has made important methodological contributions to solving the manufacturer's pricing game model
.

3.
At the industry level, the study found that only considering the supply-side pricing behavior is not enough to provide sufficient evidence for the necessity of antitrust review.
There are single or multiple important "strategic and forward-looking" buyers in many industries.
Its behavior has significantly determined the structure of the industry, and the anti-monopoly policy needs to consider the dynamic balance between the supply side and the demand side at the same time
.

4.
As far as the macro economy is concerned, there are significant differences in the concentration of sellers and buyers in different industries.
The pricing stickiness at the aggregate level has a micro foundation at the industry level, and the effectiveness of monetary policy transmission to different industries is therefore significantly heterogeneous.
Sex
.

Jia Dun is an assistant professor at the HSBC Business School of Peking University and a Ph.
D.
in economics from the University of Maryland.
His research areas include macroeconomics, macrofinance, quantitative model algorithms and Chinese economy.
Current research work focuses on the micro-foundation of quantitative macro-models-corporate pricing and manufacturers Dynamics and related applications of incomplete information in monetary policy transmission and macro-financial fields
.