Meghan Busse

About

Meghan Busse joined the Kellogg School of Management at Northwestern University in 2008 as an Associate Professor of Strategy. Prior to her tenure at Kellogg, she was on the faculty of the Haas School of Business at UC Berkeley and at the Yale School of Management. Her research initially focused on market structure and competition, with particular interest in pricing and price discrimination across various industries including cellular telephones, airlines, and automobiles. More recently, her work has centered on energy and environmental economics, investigating how firms respond to economic incentives created by climate and energy policies and how these strategic responses influence the effectiveness of such policies. Professor Busse's academic background includes a PhD in economics from MIT, and she is a research associate of the National Bureau of Economic Research. She teaches core strategy courses and electives on energy and climate at Kellogg. Her research interests encompass energy and environmental economics and policy, market structure and competition, and business strategy. She has received multiple teaching awards and holds editorial positions, including editor of the Journal of Industrial Economics. Her professional experience includes roles as a faculty research fellow at the NBER and visiting researcher at UC Berkeley.

Research topics

• Computer Science
• Art
• Business
• Commerce
• Art history
• Programming language
• Advertising

Selected publications

• Are Consumers Myopic? Evidence from New and Used Car Purchases

  American Economic Review · 2013-01-28 · 482 citations

  articleOpen access1st authorCorresponding

  We investigate whether car buyers are myopic about future fuel costs. We estimate the effect of gasoline prices on short-run equilibrium prices of cars of different fuel economies. We then compare the implied changes in willingness-to-pay to the associated changes in expected future gasoline costs for cars of different fuel economies in order to calculate implicit discount rates. Using different assumptions about annual mileage, survival rates, and demand elasticities, we calculate a range of im…

  PublisherOA PDFDOI

• Estimating the Effect of Salience in Wholesale and Retail Car Markets

  American Economic Review · 2013-05-01 · 79 citations

  article1st authorCorresponding

  We investigate whether the first digit of an odometer reading is more salient to consumers than subsequent digits. We find that retail transaction prices and volumes of used vehicles drop discontinuously at 10,000-mile odometer thresholds, echoing effects found in the wholesale market by Lacetera, Pope and Sydnor (2012). Our results reveal that retail consumers devote limited attention to evaluating vehicle mileage, and that this drives effects in the wholesale market. We estimate the inattentio…

  PublisherDOI

• Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships

  Quantitative Marketing and Economics · 2016-03-01 · 16 citations

  article1st authorCorresponding
  PublisherDOI

• Enterprise Rent-A-Car

  Kellogg School of Management Cases · 2017-01-20 · 11 citations

  article1st authorCorresponding

  An industry adage held that “there are two types of rental car companies: those that lose money and Enterprise.” The company that would become Enterprise Rent-A-Car was started in 1957 in St. Louis, Missouri, by Jack Taylor. Taylor set up Enterprise offices in neighborhoods rather than at airports because he believed that Americans would welcome a local option for renting cars when their own vehicles were being repaired. In 2010 Enterprise had more than 6,000 rental locations in the United State…

  PublisherDOI

• Repairing the Damage: The Effect of Price Expectations on Auto-Repair Price Quotes

  National Bureau of Economic Research · 2013-06-01 · 8 citations

  reportOpen access1st authorCorresponding

  In this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be well-informed, uninformed, or poorly informed about market prices. We find that repair shops quote higher prices to callers who cite a higher expected price. W…

  PublisherDOI

Frequent coauthors

• Florian Zettelmeyer

  44 shared

• Christopher R. Knittel

  National Bureau of Economic Research

  17 shared

• Duncan Simester

  14 shared

• Jorge Silva‐Risso

  University of California, Riverside

  14 shared

• Severin Borenstein

  9 shared

• Andrew B. Bernard

  9 shared

• Ryan Kellogg

  7 shared

• Devin G. Pope

  5 shared

Awards & honors

• Executive MBA Program Outstanding Teaching Award (EMBA 137)
• Sidney J Levy Teaching Award, Kellogg School of Management
• L.G. Lavengood Outstanding Professor of the Year Award, Kell…
• Nominee for L.G. Lavengood Outstanding Professor of the Year…
• Sidney J. Levy Teaching Award, 2018-2019

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