Jorge Tamayo

Jorge Tamayo

Assistant Professor of Business Administration

Assistant Professor of Business Administration

Strategy
+1 (617) 495-1048
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Jorge Tamayo
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Contact Information
(617) 495-1048
Publications Research Summary
Overview
Professor Tamayo’s research focuses on theoretical modeling and structural estimation of firm decision-making and productivity.

Professor Tamayo studies dynamic competition for customer membership. Generally, firms that implement a membership model charge a ‘membership’ fee that allows consumers to buy products/services at a unit price, in multiple periods. He looks into the price discrimination that these firms such as Amazon and DirecTV employ between new and old customers. In his research, Professor Tamayo explores how the length of the membership, the ability to price discriminate between ‘old’ and ‘new’ customers with the membership fee and unit price, and the incentives to price discriminate, all affect competition.

Professor Tamayo also researches the functioning of firms, in particular, causes of low or high labor productivity, and how firms and managers can overcome these issues. He examines how the quality of managers contributes to the productivity dynamics of the teams they manage. Using two years of daily, line-level production data from six garment factories in India, he measured contributions of seven distinct dimensions of managerial quality: tenure, cognitive skills, autonomy, personality psychometrics, control, attention, and ‘relatability’ to workers. He finds that several key dimensions of managerial quality, such as attention, autonomy, and control, are important for productivity but are not appropriately priced into market wages. Counterfactual simulations provide clear guidance on hiring and training policies. That is, firms could substantially improve productivity via psychometric measurement and screening of potential hires, and by training supervisors in attention and control.
Keywords: Industrial Organization, Industrial Development; Management Practices and Processes; Management Skills; Management Style; Energy Generation; Performance Efficiency; Market Design; Crime and Corruption; Manufacturing Industry; Energy Industry

Jorge Tamayo is an assistant professor of business administration in the Strategy Unit. He teaches the Strategy course in the MBA required curriculum.

Professor Tamayo is an applied microeconomist primarily interested in industrial organization and development economics. His research focuses on theoretical modeling and structural estimation of firm decision-making and productivity. Professor Tamayo examines the market responses to settings in which firms use price discrimination (i.e. subscriptions, or membership fees) for goods and services. His research also focuses on the ways in which managers contribute to the productivity dynamics of their teams.

Professor Tamayo earned his Ph.D. in economics from the University of Southern California. He has a B.A. in economics and an M.S. in applied mathematics from Eafit University in Medellin, Colombia. Before pursuing his doctoral degree, he worked at the Central Bank of Colombia and as an adjunct professor in the department of economics at Eafit University.

Publications on Industrial Development
Working Papers - Industrial Development
Working Papers - Competitive Price Discrimination
Cases and Teaching Materials
Book Chapters
Research Summary
Overview
Professor Tamayo’s research focuses on theoretical modeling and structural estimation of firm decision-making and productivity.

Professor Tamayo studies dynamic competition for customer membership. Generally, firms that implement a membership model charge a ‘membership’ fee that allows consumers to buy products/services at a unit price, in multiple periods. He looks into the price discrimination that these firms such as Amazon and DirecTV employ between new and old customers. In his research, Professor Tamayo explores how the length of the membership, the ability to price discriminate between ‘old’ and ‘new’ customers with the membership fee and unit price, and the incentives to price discriminate, all affect competition.

Professor Tamayo also researches the functioning of firms, in particular, causes of low or high labor productivity, and how firms and managers can overcome these issues. He examines how the quality of managers contributes to the productivity dynamics of the teams they manage. Using two years of daily, line-level production data from six garment factories in India, he measured contributions of seven distinct dimensions of managerial quality: tenure, cognitive skills, autonomy, personality psychometrics, control, attention, and ‘relatability’ to workers. He finds that several key dimensions of managerial quality, such as attention, autonomy, and control, are important for productivity but are not appropriately priced into market wages. Counterfactual simulations provide clear guidance on hiring and training policies. That is, firms could substantially improve productivity via psychometric measurement and screening of potential hires, and by training supervisors in attention and control.
Keywords: Industrial Organization, Industrial Development; Management Practices and Processes; Management Skills; Management Style; Energy Generation; Performance Efficiency; Market Design; Crime and Corruption; Manufacturing Industry; Energy Industry
Additional Information
Additional Information