RESEARCH

Recent Papers

M. A. Marini, S. Nocito (2023),"Climate Activism Favors Pro-environmental Consumption", FEEM Working Paper 024.2023 (in submission).

Abstract: We investigate whether climate activism favors pro-environmental consumption by examining the impact of Fridays for Future (FFF) protests in Italy on second-hand automobile transactions in the strike-affected areas. Leveraging data on 10 million automobile transactions occurring before and after FFF, we exploit rainfall on the day of the events as exogenous source of attendance variation. Our findings reveal that local participation to the events is associated with a reduction in the per capita CO2 emissions of pur- chased cars, an uptick in the market share of low-emission vehicles and a corresponding decrease in the market share of high-emission counterparts. Notably, we uncover heterogeneous effects across gender and age groups. Results are primarily driven by a rise in the purchase of petrol cars, with electric cars contributing to a lesser extent, thereby displacing the demand for diesel vehicles. This evidence indicates substitution effects between goods prospectively subject to more stringent environmental regulations toward those obeying milder restrictions. The study provides valuable insights into the mechanisms underlying individuals’ consumption choices under the influence of social protests.

Cirulli, V., M. A. Marini, G. Marini, O.R. Straume (2023) "Do Hospital Mergers Reduce Waiting Times? Theory and Evidence from the English NHS", FEEM Working Paper 014-2023 (under review)

Abstract: We analyse--theoretically and empirically--the effect of hospital mergers on waiting times in healthcare markets where prices are fixed. Using a spatial modelling framework where patients choose a provider based on traveling distance and waiting times, we show that the effect is theoretically ambiguous. In the presence of cost ynergies, the scope for lower waiting times as a result of the merger is larger if the hospitals are more profit-oriented. This result is arguably confirmed by our empirical analysis, which is based on a conditional flexible difference-in-differences methodology applied to a long panel of data on hospital mergers in the English NHS, where we find that the effects of a merger on waiting times crucially rely on a legal status that can reasonably be linked to the degree of profit-orientation.

Maccarrone, G., M. A. Marini, O. Tarola (2023) "Shop Until You Drop: the Unexpected Effects of Anti-consumerism and Environmentalism", DISSE WP, 01/2023 (under review).

Abstract: In an economy where consumers have heterogeneous preferences over the hedonic and environmental attributes of goods on sale, we explore the effects of anti-consumerism and environmentalism. We show that when the environmental attributes of products come at the expense of the hedonic attributes, a higher supply of anti-consumerism and environmentalism yields the expected positive effect on the environment. In contrast, when hedonic and environmental attributes are jointly met by a good, higher levels of anti-consumerism and environmentalism negatively affect the society's environmental footprint. Moreover, the welfare impact of anti-consumerism and environmentalism is far from being obvious, giving rise to unexpected redistributive effects between firms and consumers.

Bos, I., M.A. Marini, R. D. Saulle, (2021) "Myopic Oligopoly Pricing", FEEM Working Papers, "Note di Lavoro" Series, 2021.009. (Games and Economic Behavior, Myopic Oligopoly Pricing, 2024, 145, 377-412).

Abstract: This paper examines capacity-constrained oligopoly pricing with sellers who seek myopic improvements. We employ the Myopic Stable Set stability concept and establish the existence of a unique pure-strategy price solution for any given level of capacity. This solution is shown to coincide with the set of pure-strategy Nash equilibria when capacities are large or small. For an intermediate range of capacities, this stability concept predicts a price interval that includes the mixed-strategy support. The Myopic Stable Set thus encompasses all Nash equilibria and offers a pure-strategy solution when there is none in Nash terms. It furthermore provides a behavioural rationale for real-world economic phenomena such as Edgeworth-like price cycles, price dispersion and supply shortages.

Bos, I., M. A. Marini, (2022) "Oligopoly Pricing: The Role of Firm Size and Number", Games, 14,3, 1-16.

Abstract: This paper examines a homogeneous-good Bertrand-Edgeworth oligopoly model to explore the role of firm size and number in pricing. We consider the price impact of merger, breakup, investment, divestment, entry, and exit. A merger leads to higher prices only when it increases the size of the largest seller and the industry capacity is neither too big nor too small post-merger. Similarly, breaking up a firm only leads to lower prices when it concerns the biggest producer and aggregate capacity is within an intermediate range. Investment and entry (weakly) reduce prices, whereas divestment and exit yield (weakly) higher prices. Taken together, these findings suggest that size matters more than number in the determination of oligopoly prices.

Gabszewicz, J. J., Marini, M. A., Zanaj, S. (2021), "Random Encounters and Information Diffusion about Product Quality", FEEM Working Papers, 2021/002 (Journal of Economics & Management Strategy, 32,2,348-376, 2023)

Abstract: This paper explores how social interactions among consumers shape markets. In a two-country model, consumers meet and exchange information about the quality of the goods. As information spreads, the demands evolve, affecting the prices and quantities manufactured by profit-maximizing firms. We show that market prices with informational frictions reach the duopoly price with full information, at the limit. However, this convergence can take two different paths depending on the size asymmetry between countries. In particular, when countries are of very different sizes, the single market does not immediately turn into a duopoly and monopoly prices may persist for several periods. Hence, the price-reducing trade effects may take longer to appear. In view of an intense globalization process, understanding how social meetings affect market outcomes is critical for understanding the performance of international economic integration.

Kopel, M., M. A. Marini, "Mandatory Disclosure of Managerial Contracts in Nonprofit Organizations", FEEM Working Papers, "Note di Lavoro" Series, 2020.26. (Journal of Economic Behavior and Organization, 199, 65-85, 2022)

Abstract: Nonprofit organizations have been recently mandated to disclose the details of their executives’ compensation packages. Contract information is now accessible not only to current and prospective donors but also to rival nonprofit organizations competing for donations in the fundraising market. Our aim is to investigate the impact of publicly available contract information on the fundraising competition of nonprofit organizations. We argue that, although such provision makes contract information available to multiple stakeholders and increases the transparency of the nonprofit sector, it also induces nonprofits to use managerial incentive contracts strategically. In particular, we find that the observability of incentive contracts relaxes existing fundraising competition. This is beneficial in terms of nonprofits’ outputs, in particular when these organizations are trapped in a situation of excessive fundraising activities. However, we show that publicly available contract information distorts nonprofits’ choice of projects, thus potentially inducing socially inefficient project clustering.

Marini, M. A., Tarola, O., Thisse J-F. (2022) "Is Environmentalism the Right Strategy to Decarbonize the World?", Environmental & Resource Economics. CEPR Discussion Paper, DP15355,

Abstract: We study how the supply of environmentalism, which is defined by psychic benefits (costs) associated with the purchase of high-environmental (low-environmental) qualities, affects the way firms choose their prices and products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not necessarily give rise to a better environmental outcome because it endows the green firms with more market power which they use to charge higher prices. Nonetheless, environmentalism can be used to effectively complement more traditional policy instruments such as a minimum environmental standard.

My Research Profile in:   IDEAS          EconPapers             SSRN           Research Gate       Academia