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Photo of David Hao Zhang

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Area of Study

  • Negotiation, Organizations and Markets

Doctoral Student

David Hao Zhang

David Zhang is a second year doctoral student at HBS.
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David Zhang is a second year doctoral student at HBS.
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Publications

Working Papers

  1. Working Paper | 2018

    Semi-Parametric Estimation of Dynamic Discrete Choice Models

    David Hao Zhang

    I develop a new method for estimating counterfactuals in dynamic discrete choice models, a widely used set of models in economics, without requiring a distributional assumption on utility shocks. Applying my method to the canonical Rust (1987) setting, I find that the typical logit assumption on utility shocks can lead the researcher to conclude that the agent's counterfactual choice probabilities are much more sensitive than what a semi-parametric model would suggest. Therefore, my method may be useful to applied researchers in generating policy counterfactuals that are robust to such distributional assumptions.

    Keywords: semiparametrics; dynamic discrete choice; consumer choice; Mathematical Methods;

    Citation:

    Zhang, David Hao. "Semi-Parametric Estimation of Dynamic Discrete Choice Models." Working Paper, April 2018.  View Details
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Journal Articles

  1. Article | Managerial and Decision Economics

    Options Compensation as a Commitment Mechanism in Oligopoly Competition

    Jun Ishii and David Hao Zhang

    We analyze how CEO stock options compensation can be used as a commitment device in oligopolistic competition. We develop a two-stage model where shareholders choose managerial compensation to commit their managers to being aggressive in equilibrium. Our results may explain why some shareholders appear to incentivize ‘excessive’ risk taking through stock options compensation. We analyze how our results are impacted by product quality, marginal cost, product differentiation, and industry concentration. As motivation for our research, we show that there exists positive empirical correlation between industry concentration and options compensation vega within a sample of firms, as suggested by our model.

    Keywords: CEO compensation; ceo risk-taking; strategic delegation; Stock Options; Executive Compensation;

    Citation:

    Ishii, Jun, and David Hao Zhang. "Options Compensation as a Commitment Mechanism in Oligopoly Competition." Managerial and Decision Economics 38, no. 4 (June 2017): 513–525.  View Details
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  2. Article | International Journal of Industrial Organization

    History-based versus Uniform Pricing in Growing and Declining Markets

    Oz Shy, Rune Stenbacka and David Hao Zhang

    We analyze the Markov Perfect Equilibria of an infinite-horizon overlapping generations model with consumer lock-in to compare the performance of history-based and uniform pricing in growing and declining markets. Under history-based pricing, firms charge higher prices to locked-in customers and lower prices to new customers. We show that a high exit rate of consumers (sufficiently declining market) constitutes a sufficient condition for history-based pricing to generate higher average prices than uniform pricing, thereby harming consumer welfare. In contrast, a high consumer entry rate (sufficiently growing market) ensures that history-based pricing intensifies competition compared with uniform pricing.

    Keywords: history-based pricing; introductory discount; uniform pricing; consumer lock-in; high switching costs; Demand and Consumers; Competition; Price; Market Entry and Exit; Product Marketing;

    Citation:

    Shy, Oz, Rune Stenbacka, and David Hao Zhang. "History-based versus Uniform Pricing in Growing and Declining Markets." International Journal of Industrial Organization 48 (September 2016): 88–117.  View Details
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Discussions

  1. Panel Discussion | 21 Apr 2018

    Discussion of "Identification of Dynamic Games with Multiple Equilibria and Unobserved Heterogeneity with Application to Fast Food Chains In China", by Yao Luo, Ping Xiao, Ruli Xiao

    David Hao Zhang

    Citation:

    Zhang, David Hao. Discussion of "Identification of Dynamic Games with Multiple Equilibria and Unobserved Heterogeneity with Application to Fast Food Chains In China", by Yao Luo, Ping Xiao, Ruli Xiao. International Industrial Organization Conference (IIOC), Indianapolis, IN, USA, April 21, 2018.  View Details
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  2. Talk | 27 Oct 2016

    Summary of "Size Discovery" by Darrell Duffie and Haoxiang Zhu

    David Hao Zhang

    Citation:

    Zhang, David Hao. Summary of "Size Discovery" by Darrell Duffie and Haoxiang Zhu. Harvard Finance Theory Reading Group, October 27, 2016.  View Details
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Consumer Payments

  1. Report | 2016

    How Do People Pay Rent?

    David Hao Zhang

    Households still pay rent primarily with paper methods, even though electronic methods are featured more prominently among high-income, high-education, and high-rent households. These patterns may be explained either by the lack of landlord acceptance of electronic methods or by the unwillingness of tenants to pay using these methods.
    The dominant methods for paying rent are cash (22 percent), check (42 percent), and money order (16 percent). Electronic methods are still rarely used, at 8 percent for bank account number payment and 7 percent for online banking bill payment, and less than 2 percent for debit and credit cards.
    Compared with other large bill payments of more than $200, rental payments are much more likely to be made with paper-based methods than with electronic methods, despite the recent attempts by start-ups to make it easier for landlords to accept electronic payments. They are also much less likely to be automatic.
    Check and electronic methods are more frequently used for higher-value transactions and by those with higher income and education.

    Keywords: consumer payments; rent payments; money order; cash; credit card; checks; Credit Cards; Online Technology; Consumer Behavior; Cash; Leasing;

    Citation:

    Zhang, David Hao. "How Do People Pay Rent?" Federal Reserve Bank of Boston, Research Data Report, No. 16-2, Federal Reserve Bank of Boston, Boston, MA, 2016.  View Details
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Blog posts

  1. Blog Post | MortgageYields.com

    Should You Refinance Your Mortgage with Your Current Lender?

    David Hao Zhang

    Keywords: mortgage lending; mortgages;

    Citation:

    Zhang, David Hao. "Should You Refinance Your Mortgage with Your Current Lender?" MortgageYields.com (2018). https://mortgageyields.com/mortgage-research/should-you-refinance-your-mortgage-with-your-current-lender/.  View Details
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