Research
Research Interests
Quantitative Marketing, Marketing and Public Policy, Retailing, Sustainable Consumption
Publications
Kotschedoff, M., Pachali, M. (2020). Higher Minimum Quality Standards and Redistributive Effects on Consumer Welfare. Marketing Science, 39 (1), 253-280. Link
Abstract
This paper estimates an individual level demand model for eggs differentiated by animal welfare. Typically, after minimum quality standards for eggs are raised, the price of higher quality eggs falls. As a result, consumer welfare is redistributed from households who do not value animal welfare to households who are willing to pay a premium for animal welfare. In our analysis of German household data, we find that on average, households with higher income are willing to pay more for eggs that provide higher animal welfare. This provides evidence that higher minimum quality standards have a regressive impact. In counter-factual scenarios, we estimate the cost reduction that would be needed to offset the regressive effect, and find that as retailers' pricing power increases, the cost reduction must be higher. Finally, we consider hypothetical future scenarios that continue to increase the minimum quality standard until only the highest quality eggs remain on the market.Pachali, M., Kotschedoff, M., van Lin, A., Bronnenberg, B., van Herpen, E. (2023). How Do Nutritional Warning Labels Affect Prices? Journal of Marketing Research, 60(1), 92-109. Link
Abstract
Obesity is increasing worldwide, and in many countries, the problem is particularly serious among lower-income groups. Front-of-pack nutritional warning labels are a prominent regulatory tool to fight obesity and have been implemented or are currently being debated in many countries. Existing studies document that warning labels incentivize consumers to substitute away from unhealthy products. However, not much is known about equilibrium price changes in response to consumers' utility for warning labels. Using household purchase data in the cereal category, this article studies the adjustments of prices after the mandatory introduction of warning labels in Chile. The authors develop a model showing that warning labels lead to higher prices of labeled cereals, as is also observed in data. In contrast, prices of unlabeled products tend to drop or at least increase less, incentivizing price-sensitive consumers to remain in the category. The authors decompose postlabeling market share adjustments into a pure label effect that fixes prices at initial levels after regulation and a total effect that accounts for price reoptimizations. Their findings point to self-enforcing effects of a warning label regulation as the price adjustments amplify policy makers' goal of reducing unhealthy food intake, especially because market forces incentivize low-income segments to choose healthier alternatives.Kotschedoff, M., Kowalczyk, L., Breugelmans, E. (2025). The persistence of grocery shopping behavior and retailer choice: Evidence from a major labor strike Quantitative Marketing and Economics, 1-44. Link
Abstract
In this research, we leverage an exogenous shock that temporally deprives consumers of accessing stores of a major retail chain due to a strike resulting in a one-week closure. This temporary store unavailability gives insights into how persistent grocery shopping behavior and retailer choice are after consumers have switched to competing grocery retail chains. Using household purchase data and a difference-in-differences approach, we show that consumers are more likely to visit and spend more at competing grocery chains during the temporary store closure. However, these changes in purchase behavior are only temporary. Consumers quickly revert to their pre-strike shopping behavior once the stores reopen. In a set of calibrated simulations, we illustrate that this persistence of shopping behavior is consistent with low levels of state dependence. The results of persistence in grocery shopping behavior are robust across perishable vs. non-perishable categories and across households with varying levels of share of wallet to the affected retail chain.Selected Working Papers
Kotschedoff, M., Pachali, M., Rao, A. (2024). The Impact of Voluntary Animal Welfare Labels. Preliminary working paper available upon request
Kotschedoff, M., Malik, F. (2022). Managing Customer Cancellations on Online Booking Platforms. Working paper available upon request