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Alexander J. MacKay

Alexander J. MacKay

Assistant Professor of Business Administration

Assistant Professor of Business Administration

Alexander MacKay is an assistant professor of business administration in the Strategy Unit. His research focuses on matters of competition, including pricing, demand, and market structure. Previously, he was a postdoctoral scholar at Harvard Business School and at Harvard Kennedy School.

For more details about his research, please visit alexandermackay.org.
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Alexander MacKay is an assistant professor of business administration in the Strategy Unit. His research focuses on matters of competition, including pricing, demand, and market structure. Previously, he was a postdoctoral scholar at Harvard Business School and at Harvard Kennedy School.

Professor MacKay earned his Ph.D. in economics from the University of Chicago. Prior to his doctoral degree, he worked at a consulting firm that specialized in the design and analysis of business experiments. He has a B.A. in economics from the University of Virginia.

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Strategy
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Alexander J. MacKay
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Strategy
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Publications Research Summary

Journal Articles
Journal Articles

  • Brown, Zach Y., and Alexander J. MacKay. "Competition in Pricing Algorithms." American Economic Journal: Microeconomics (forthcoming). View Details
  • Egan, Mark, Alexander J. MacKay, and Hanbin Yang. "Recovering Investor Expectations from Demand for Index Funds." Review of Economic Studies (forthcoming). View Details
  • MacKay, Alexander J. "Contract Duration and the Costs of Market Transactions." American Economic Journal: Microeconomics (forthcoming). View Details
  • Deryugina, Tatyana, Alexander MacKay, and Julian Reif. "The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation." American Economic Journal: Applied Economics 12, no. 1 (January 2020): 86–114. View Details
  • MacKay, Alexander, and David A. Smith. "Challenges for Empirical Research on RPM." Review of Industrial Organization 50, no. 2 (March 2017): 209–220. View Details
  • MacKay, Alexander, Nathan H. Miller, Marc Remer, and Gloria Sheu. "Bias in Reduced-form Estimates of Pass-through." Economics Letters 123, no. 2 (May 2014): 200–202. View Details

Working Papers
Working Papers

  • MacKay, Alexander J., and Samuel Weinstein. "Dynamic Pricing Algorithms, Consumer Harm, and Regulatory Response." Harvard Business School Working Paper, No. 22-050, January 2022. (Direct download.) View Details
  • Egan, Mark, Alexander MacKay, and Hanbin Yang. "What Drives Variation in Investor Portfolios? Evidence from Retirement Plans." Harvard Business School Working Paper, No. 22-044, December 2021. (Direct download. NBER Working Paper Series, No. 29604, December 2021) View Details
  • Döpper, Hendrik, Alexander MacKay, Nathan H. Miller, and Joel Stiebale. "Rising Markups and the Role of Consumer Preferences." Harvard Business School Working Paper, No. 22-025, October 2021. (Revised March 2022. Direct download.) View Details
  • MacKay, Alexander, and Ignacia Mercadal. "Deregulation, Market Power, and Prices: Evidence from the Electricity Sector." Harvard Business School Working Paper, No. 21-095, February 2021. (Revised January 2022. Direct download.) View Details
  • MacKay, Alexander, and Marc Remer. "Consumer Inertia and Market Power." Harvard Business School Working Paper, No. 19-111, April 2019. (Revised January 2022. Direct download.) View Details
  • MacKay, Alexander, and Nathan H. Miller. "Estimating Models of Supply and Demand: Instruments and Covariance Restrictions." Harvard Business School Working Paper, No. 19-051, October 2018. (Revised February 2022. Direct download.) View Details

Cases and Teaching Materials
Cases and Teaching Materials

  • MacKay, Alexander J. "Commonwealth Joe: January 2020 Update from CEO Robert Peck." Harvard Business School Multimedia/Video Supplement 721-851, September 2020. (Link to Supplement.) View Details
  • MacKay, Alexander J. "Uber: Competing Globally." Harvard Business School Teaching Note 721-387, September 2020. View Details
  • MacKay, Alexander J. "Commonwealth Joe Coffee Roasters." Harvard Business School Teaching Note 721-388, September 2020. View Details
  • MacKay, Alexander J., Amram Migdal, and John Masko. "Uber: Competing Globally." Harvard Business School Case 720-404, April 2020. (Revised January 2022.) View Details
  • Collis, David, and Alexander MacKay. "Choosing the Right Esports Business Model." Harvard Business School Case 719-459, March 2019. (Revised March 2020.) View Details
  • MacKay, Alexander, and Ramon Casadesus-Masanell. "Commonwealth Joe Coffee Roasters." Harvard Business School Case 719-451, December 2018. (Revised December 2019.) View Details
All Publications

Alexander MacKay is an assistant professor of business administration in the Strategy Unit. His research focuses on matters of competition, including pricing, demand, and market structure. Previously, he was a postdoctoral scholar at Harvard Business School and at Harvard Kennedy School.

Professor MacKay earned his Ph.D. in economics from the University of Chicago. Prior to his doctoral degree, he worked at a consulting firm that specialized in the design and analysis of business experiments. He has a B.A. in economics from the University of Virginia.

Journal Articles
  • Brown, Zach Y., and Alexander J. MacKay. "Competition in Pricing Algorithms." American Economic Journal: Microeconomics (forthcoming). View Details
  • Egan, Mark, Alexander J. MacKay, and Hanbin Yang. "Recovering Investor Expectations from Demand for Index Funds." Review of Economic Studies (forthcoming). View Details
  • MacKay, Alexander J. "Contract Duration and the Costs of Market Transactions." American Economic Journal: Microeconomics (forthcoming). View Details
  • Deryugina, Tatyana, Alexander MacKay, and Julian Reif. "The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation." American Economic Journal: Applied Economics 12, no. 1 (January 2020): 86–114. View Details
  • MacKay, Alexander, and David A. Smith. "Challenges for Empirical Research on RPM." Review of Industrial Organization 50, no. 2 (March 2017): 209–220. View Details
  • MacKay, Alexander, Nathan H. Miller, Marc Remer, and Gloria Sheu. "Bias in Reduced-form Estimates of Pass-through." Economics Letters 123, no. 2 (May 2014): 200–202. View Details
Working Papers
  • MacKay, Alexander J., and Samuel Weinstein. "Dynamic Pricing Algorithms, Consumer Harm, and Regulatory Response." Harvard Business School Working Paper, No. 22-050, January 2022. (Direct download.) View Details
  • Egan, Mark, Alexander MacKay, and Hanbin Yang. "What Drives Variation in Investor Portfolios? Evidence from Retirement Plans." Harvard Business School Working Paper, No. 22-044, December 2021. (Direct download. NBER Working Paper Series, No. 29604, December 2021) View Details
  • Döpper, Hendrik, Alexander MacKay, Nathan H. Miller, and Joel Stiebale. "Rising Markups and the Role of Consumer Preferences." Harvard Business School Working Paper, No. 22-025, October 2021. (Revised March 2022. Direct download.) View Details
  • MacKay, Alexander, and Ignacia Mercadal. "Deregulation, Market Power, and Prices: Evidence from the Electricity Sector." Harvard Business School Working Paper, No. 21-095, February 2021. (Revised January 2022. Direct download.) View Details
  • MacKay, Alexander, and Marc Remer. "Consumer Inertia and Market Power." Harvard Business School Working Paper, No. 19-111, April 2019. (Revised January 2022. Direct download.) View Details
  • MacKay, Alexander, and Nathan H. Miller. "Estimating Models of Supply and Demand: Instruments and Covariance Restrictions." Harvard Business School Working Paper, No. 19-051, October 2018. (Revised February 2022. Direct download.) View Details
Cases and Teaching Materials
  • MacKay, Alexander J. "Commonwealth Joe: January 2020 Update from CEO Robert Peck." Harvard Business School Multimedia/Video Supplement 721-851, September 2020. (Link to Supplement.) View Details
  • MacKay, Alexander J. "Uber: Competing Globally." Harvard Business School Teaching Note 721-387, September 2020. View Details
  • MacKay, Alexander J. "Commonwealth Joe Coffee Roasters." Harvard Business School Teaching Note 721-388, September 2020. View Details
  • MacKay, Alexander J., Amram Migdal, and John Masko. "Uber: Competing Globally." Harvard Business School Case 720-404, April 2020. (Revised January 2022.) View Details
  • Collis, David, and Alexander MacKay. "Choosing the Right Esports Business Model." Harvard Business School Case 719-459, March 2019. (Revised March 2020.) View Details
  • MacKay, Alexander, and Ramon Casadesus-Masanell. "Commonwealth Joe Coffee Roasters." Harvard Business School Case 719-451, December 2018. (Revised December 2019.) View Details
Research Summary
Overview
Professor MacKay combines theory and measurement to deliver new insights about price competition and consumer preferences. In current and published papers, his research addresses how strategic pricing decisions may be influenced by algorithms, long-term contracts, vertical restraints, and dynamic consumer behavior. His work considers the broader implications for firms and for competition authorities.

Professor MacKay has examined how individuals form beliefs and preferences over time, and he has studied the implications of evolving preferences for firm markups. For example, dynamic consumer behavior, which can arise from switching costs or brand loyalty, influences not only a firm's pricing in isolation, but it also affects strategic interactions with rival firms. Thus, the impacts of mergers, entry, and exit, may hinge on the degree to which consumers dynamically adjust their preferences over time.

An important angle of Professor MacKay’s research is the heterogeneity in beliefs and preferences across individuals. Why do different people make very different decisions given the same set of opportunities? And how do these differences change over time? A shift in the distribution of preferences can cause a significant change in market outcomes. Therefore, firms that are better able to forecast how tastes and beliefs are evolving may be able to make better strategic decisions.

His research suggests new considerations for regulators when it comes to price competition. In examining the use of pricing algorithms in online markets, he shows that the adoption of higher-frequency algorithms by one or more firms can allow all firms to charge higher markups, without resorting to tacit or explicit collusion. Thus, unregulated pricing technology may allow firms to increase prices, even to the collusive levels, without using classic collusive strategies.

Keywords: Price Effects; Competition Policy; Algorithms; Online Competition; Dynamic Pricing; Beliefs; Preferences; Preference Heterogeneity; Preference Measurement; Competition; Microeconomics; Strategy; Integration; Cooperation
Additional Information
  • Personal Website
Areas of Interest
  • anti-trust
  • competition
  • econometrics
  • economics
  • pricing
  • Additional Topics
  • competitive strategy
  • contracts
  • government and business
  • industry structure
  • procurement
  • strategy
Additional Information
Personal Website

Areas of Interest

anti-trust
competition
econometrics
economics
pricing
 More

Additional Topics

competitive strategy
contracts
government and business
industry structure
procurement
strategy
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