photo of Oz Shy

Oz Shy

Senior Policy Adviser and Economist
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To interview economists, press should contact Public Affairs at 404-498-8748.

  • Biography

    Oz Shy is a senior policy adviser and economist in the Research Department at the Federal Reserve Bank of Atlanta. He has published three books: How to Price (Cambridge University Press, 2008), The Economics of Network Industries (Cambridge University Press, 2001), and Industrial Organization: Theory and Applications (MIT Press, 1996). Dr. Shy has published more than 70 journal and book articles in the areas of industrial organization, network economics, banking, payments, labor economics, and international trade. He is an associate editor of the International Journal of Industrial Organization. Dr. Shy has taught at the universities of Michigan, Haifa, and Tel Aviv; the Stockholm School of Economics; the Hanken School of Economics; and the State University of New York. He was a research professor at the WZB Social Science Research Center in Berlin, Germany. Prior to his role at the Atlanta Fed, he taught at the Massachusetts Institute of Technology’s Sloan School of Management and was a senior economist at the Federal Reserve Bank of Boston. Dr. Shy received a bachelor's degree in economics from the Hebrew University of Jerusalem, a PhD in economics from the University of Minnesota, and an honorary doctorate from the Hanken School of Economics.

  • Working Papers

    Atlanta Fed Working Papers

    2019-11a
    Cashless Stores and Cash Users
    Oz Shy
    May 2019 (revised August 2019)
    Abstract | Full text Adobe PDF file format

    2019-02
    How the ATM Affects the Way We Pay
    Oz Shy
    February 2019
    Abstract | Full text Adobe PDF file format

    Boston Fed Working PapersOff-site link

    2014-01
    Merchant Steering of Consumer Payment Choice: Evidence from a 2012 Diary Survey
    Oz Shy and Joanna Stavins
    June 2014
    Abstract | Full text Adobe PDF file format

    2013-13
    How Many Cards Do You Use?
    Oz Shy
    December 2013
    Abstract | Full text Adobe PDF file format

    2012-04
    Investment in Customer Recognition and Information Exchange
    Oz Shy and Rune Stenbacka
    March 2012
    Abstract | Full text Adobe PDF file format

    2011-07
    Customer Recognition and Competition
    Oz Shy and Rune Stenbacka
    July 2011
    Abstract | Full text Adobe PDF file format

    2010-03
    A Short Survey of Network Economics
    Oz Shy
    April 2010
    Abstract | Full text Adobe PDF file format

    2009-09
    Efficient Organization of Production: Nested versus Horizontal Outsourcing
    Oz Shy and Rune Stenbacka
    Abstract | Full text Adobe PDF file format

    2009-08
    Real Estate Brokers and Commission: Theory and Calibrations
    Oz Shy
    September 2009
    Abstract | Full text Adobe PDF file format

  • Selected Other Fed Work

    Articles

    Oz Shy. "Cashless Stores and Cash Users." Notes from the Vault (2019 May).

    Public Policy Discussion PapersOff-site link

    2012-06
    Who Gains and Who Loses from the 2011 Debit Card Interchange Fee Reform?
    Oz Shy
    Abstract | Full text Adobe PDF file format

    2010-03
    Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations
    Scott Schuh, Oz Shy, and Joanna Stavins
    Abstract | Full text Adobe PDF file format

    2010-01
    Person-to-Person Electronic Funds Transfers: Recent Developments and Policy Issues
    Oz Shy
    Abstract | Full text Adobe PDF file format

    Research Data Reports

    2019-01
    How Consumers Get Cash: Evidence from a Diary Survey
    Claire Greene and Oz Shy
    Abstract | Full text Adobe PDF file format

    2015-03
    How Are U.S. Consumers Using General Purpose Reloadable Prepaid Cards? Are They Being Used as Substitutes for Checking Accounts?
    Claire Greene and Oz Shy
    Abstract | Full text Adobe PDF file formatOff-site link

    2013-01
    Merchant Steering of Consumer Payment Choice: Evidence from a 2012 Diary Survey
    Oz Shy and Joanna Stavins
    Abstract | Full text Adobe PDF file formatOff-site link

  • Publications

    Books

    Shy, O. How to Price: A Guide to Pricing Techniques and Yield Management. Cambridge University Press, 2008. ISBN: 978-0-521-88759-5 (hc), 978-0-521-71564-5 (pb), [448 pages, 63 illustrations, 95 tables, 38 computer algorithms, 77 problems/solutions].

    Shy, O. The Economics of Network Industries. Cambridge University Press, 2001. ISBN: 0-521-80095-1 (hc), 0-521-80500-7 (pb), [329 pages, 56 illustrations, 23 tables]. Chinese edition: Shanghai University of Finance & Economics Press, 2002; ISBN: 7-81049-773-1/F 662. Japanese edition: Springer-Tokyo, 2003; ISBN 4-431-71003-5. Taiwan edition: Yeh Yeh Book Gallery, 2004; ISBN 957-8555-89-X.

    Shy, O. Industrial Organization: Theory and Applications. The MIT Press, 1996. ISBN: 0-262-19366-3 (hc), 0-262-69179-5 (pb), [466 pages, 112 illustrations, 17 tables]. Chinese edition: Tsinghua University Press, 2005; ISBN: 7-302-10612-6.

    Refereed Journal Articles

    Shy, O. and R. Stenbacka. "Bank Competition, Real Investments, and Welfare." Journal of Economics, forthcoming.

    Chen, H., K. Huynh, and Oz Shy. "Cash Versus Card: Payment Discontinuities and the Burden of Holding Coins." Journal of Banking and Finance, 99, February 2019, 192–201.

    Shy, O. and R. Stenbacka. "Anti-Poaching Agreements in Labor Markets." Economic Inquiry, 57(1), January 2019, 243–263.

    Shy, O. and R. Stenbacka. "Dynamic Labor Market Competition and Wage Seniority." International Journal of Industrial Organization, 61, November 2018, 130–154.

    Greene, C., M. Rysman, S. Schuh, and O. Shy. "Costs and Benefits of Building Faster Payment Systems: The U.K. Experience." Capco Institute Journal of Financial Transformation, 47, April 2018.

    Shy, O. and R. Stenbacka. "An Overlapping Generations Model of Taxpayer Bailouts of Banks." Journal of Financial Stability, 33, December 2017, 71–80.

    Gayer, A. and O. Shy. "A Welfare Evaluation of Tying Strategies." Research in Economics, 70(4), December 2016, 623–637.

    Shy, O., R. Stenbacka, and V. Yankov. "Limited Deposit Insurance Coverage and Bank Competition." Journal of Banking and Finance, 71, October 2016, 95–108.

    Shy, O., R. Stenbacka, and D. Zhang. "History-based versus Uniform Pricing in Growing and Declining Markets." International Journal of Industrial Organization, 48, September 2016, 88–117.

    Shy, O. and R. Stenbacka. "Customer Privacy and Competition." Journal of Economics and Management Strategy, 25(3), Fall 2016, 539–562.

    Shy, O. "Do Tips Increase Workers' Income?" Management Science, 61(9), September 2015, 2041–2051.

    Shy, O. and J. Stavins. "Merchant Steering of Consumer Payment Choice: Evidence from a 2012 Diary Survey." Journal of Behavioral and Experimental Economics, 55, April 2015, 1–9.

    Melnik, A. and O. Shy. "Exclusion, Competition, and Regulation in the Retail Loan Market." Journal of Banking and Finance, 52, March 2015, 189–198.

    Greene, C. and O. Shy. "E-cash and Virtual Currency as Alternative Payment Methods." Journal of Payments Strategy and Systems, 8(3), Autumn/Fall 2014, 274–288.

    Shy, O. "Measuring Some Effects of the 2011 Debit Card Interchange Fee Reform." Contemporary Economic Policy, 32(4), 2014, 769–783.

    Briglevics, T. and O. Shy. "Why Don’t Most Merchants Use Price Discounts to Steer Consumer Payment Choice?" Review of Industrial Organization, 44(4), 2014, 367–392.

    Shy, O. and J. Stavins. "Merchant Steering of Consumer Payment Choice: Lessons Learned From Consumer Surveys." Survey Methods: Insights from the Field, April 2014.

    Shy, O. and R. Stenbacka. "Investment in Customer Recognition and Information Exchange." Information Economics and Policy, 25(2), 2013, 92–106.

    Gehrig, T., O. Shy, and R. Stenbacka. "A Welfare Evaluation of History-Based Price Discrimination." Journal of Industry, Competition and Trade, 12(4), 2012, 373–393.

    Shy, O. "Real Estate Brokers and Commission: Theory and Calibrations. Journal of Real Estate Finance and Economics, 45(4), 2012, 982–1004.

    Shy, O. and R. Stenbacka. "Efficient Organization of Production: Nested versus Horizontal Outsourcing." Economics Letters, 116(3), September 2012, 593–596.

    Shy, O. "Account-to-Account Electronic Money Transfers: Recent Developments in the United States." Review of Network Economics, 11(1), March 2012, Article 3.

    Schuh, S., O. Shy, J. Stavins, and R. Triest. "An Economic Analysis of the 2011 Proposed Settlement Between the Department of Justice and Credit Card Networks." Journal of Competition Law and Economics, 8(1), March 2012, 107–44.

    Shy, O. and Z. Wang. "Why Do Card Networks Charge Proportional Fees?" American Economic Review, 101(4), June 2011, 1575–1590.

    Gehrig, T., O. Shy, and R. Stenbacka. "History-based Price Discrimination and Entry in Markets with Switching Costs: A Welfare Analysis." European Economic Review, 55(5), June 2011, 732–739.

    Shy, O. "A Short Survey of Network Economics." Review of Industrial Organization, 38(2), March 2011, 119–149.

    Shy, O. "Consistent Bargaining." Economics Bulletin, 30(2), May 2010, 1425–1432.

    Forshner, Z. and O. Shy, "Constant Best-Response Functions: Interpreting Cournot." International Journal of Business and Economics, 8(1), April 2009, 1–6.

    Shy, O. "Measuring the Cost of Making Payment Decisions." Journal of Socio-Economics, 37(6), December 2008, 2411–2416.

    30. Ringbom, S. and O. Shy. "Refunds and Collusion in Service Industries." Journal of Economics and Business, 60(6), Nov.–Dec. 2008, 502–516.

    Melnik, A., O. Shy, and R. Stenbacka, "Assessing Market Dominance." Journal of Economic Behavior and Organization, 68(1), October 2008, 63–2.

    Shy, O. and R. Stenbacka. "Price Competition, Business Hours, and Shopping Time Flexibility." Economic Journal, 118, August 2008, 1171–1195.

    Shy, O. and R. Stenbacka. "Rethinking the Roles of Banks: A Call for Narrow Banking." The Economists' Voice, 5(2), June 2008, Art. 6.

    34. Shy, O. and R. Stenbacka. "Liquidity Provision and Optimal Bank Regulation." International Journal of Economic Theory, 3(3), September 2007, 219–233.

    Shy, O., "Dynamic Models of Religious Conformity and Conversion: Theory and Calibrations." European Economic Review, 51(5), July 2007, 1127–1153.

    Gayer, A. and O. Shy. "Publishers, Artists, and Copyright Enforcement." Information Economics and Policy, 18(4), November 2006, 374–384.

    Shy, O. and R. Stenbacka. "Service Hours with Asymmetric Distributions of Ideal Service Time." International Journal of Industrial Organization, 24(4), July 2006, 736–771.

    Shy, O. and R. Stenbacka. "Partial Outsourcing, Monitoring Cost, and Market Structure." Canadian Journal of Economics, 38(4), November 2005, 1173–1190.

    Ringbom, S. and O. Shy, "Advance Booking, Cancellations, and Partial Refunds," Economics Bulletin, 13(1), 2004, 1–7.

    Shy, O. and R. Stenbacka. "Market Structure and Risk Taking in the Banking Industry." Journal of Economics, 82(3), July 2004, 249–280.

    Hassin, O. and O. Shy. "Code-Sharing Agreements and Interconnections in Markets for International Flights." Review of International Economics, 12(3), August 2004, 337–352.

    Ringbom, S., O. Shy, and R. Stenbacka. "Optimal Liquidity Management and Bail-out Policy in the Banking Industry." Journal of Banking and Finance, 28(6), June 2004, 1319–1335.

    Gayer, A. and O. Shy. "Copyright Protection and Hardware Taxation." Information Economics and Policy, 15(4), December 2003, 467&nsash;483.

    Gayer, A. and O. Shy. "Internet and Peer-to-Peer Distributions in Markets for Digital Products." Economics Letters, 81(2), November 2003, 51–57.

    Shy, O. and R. Stenbacka. "Market Structure and Diversification of Mutual Funds." Journal of Financial Markets, 6(4), August 2003, 607–624.

    Issman-Weit, E. and O. Shy. "Pricing of Library Subscriptions with Applications to Scientific Journals." Journal of Economics and Business, 55(2), March–April 2003, 197–218.

    Shy, O. and R. Stenbacka. "Strategic Outsourcing," Journal of Economic Behavior and Organization, 50(2), February 2003, 203–224.

    48. Ringbom, S. and O. Shy. "The "Adjustable-Curtain" Strategy: Overbooking of Multiclass Service." Journal of Economics, 77(1), 2002, 73–90.

    Shy, O. and J. Tarkka. "The Market for Electronic Cash Cards." Journal of Money, Credit, and Banking, 34(2), May 2002, 299–314.

    Shy, O., "A Quick-and-Easy Method for Estimating Switching Costs." International Journal of Industrial Organization, 20(1), January 2002, 71–87.

    Grilo, I., O. Shy, and J. Thisse. "Price Competition When Consumer Behavior is Characterized by Conformity and Vanity." Journal of Public Economics, 80(3), June 2001, 385–408.

    Gandal, N. and O. Shy. "Standardization Policy and International Trade." Journal of International Economics, 53(2), 2001, 363–383.

    Shy, O. "Exporting as a Signal for Product Quality." Economica, 67(1), February 2000, 79–90.

    Shy, O. and J. Thisse. "A Strategic Approach to Software Protection." Journal of Economics and Management Strategy, 8(2), Summer 1999, 163–190.

    Berechman, J., S. Poddar, and O. Shy. "Network Structure and Entry in the Deregulated Airline Industry." Keio Economic Studies, 35(2), 1998, 71–82.

    Shy, O. "Technology Revolutions in the Presence of Network Externalities." International Journal of Industrial Organization, 14(6), October 1996, 785–800.

    Chou, C. and O. Shy. "Do Consumers Always Gain When More People Buy the Same Brand?" European Journal of Political Economy, 12, September 1996, 309–330.

    Horn, H. and O. Shy. "Bundling and International Market Segmentation." International Economic Review, 37(1), February 1996, 51–69.

    Fishman, A., N. Gandal, and O. Shy. "Planned Obsolescence as an Engine of Technological Progress." Journal of Industrial Economics, 41(4), December 1993, 361–370.

    Chou, C. and O. Shy. "The Crowding-Out Effects of Long Duration of Patents." Rand Journal of Economics, 24(2), Summer 1993, 304–312.

    Chou, C. and O. Shy. "Technology Revolutions and the Gestation of New Technologies." International Economic Review, 34(3), August 1993, 631–645.

    Chou, C. and O. Shy. "Partial Compatibility and Supporting Services." Economics Letters, 41, 1993, 193–197.

    Lee, F. and O. Shy. "A Welfare Evaluation of Technology Transfer to Joint Ventures in the Developing Countries." The International Trade Journal, 7(2), Winter 1992, 205–220.

    Chou, C. and O. Shy. "A Model Technology Gap, Product Cycle, and the Process of Catching up Between the North and the South." Economics Record, September 1991, 217–226.

    Chou, C. and O. Shy. "An Overlapping Generations Model of Self-Propelled Growth." Journal of Macroeconomics, 13(3), Summer 1991, 511–521.

    Chou, C. and O. Shy. "Intra-Industry Trade and the Variety of Home Products." Canadian Journal of Economics, 24(2), May 1991, 405–416.

    Chou, C. and O. Shy. "New Product Development and the Optimal Duration of Patents." Southern Economic Journal, 57(3), January 1991, 811–821.

    Chou, C. and O. Shy. "Network Effects Without Network Externalities." International Journal of Industrial Organization, 8, June 1990, 259–270.

    Shy, O. "External Effects and Pareto Inferior Trade." Southern Economic Journal, 56, July 1989, 56–63.

    Shy, O. "A General Equilibrium Model of Pareto Inferior Trade." Journal of International Economics, 25, August 1988, 143–154.

    Articles Published in Edited Books

    Shy, O. "Strategies for Network Industries." In: C. Thomas and W. Shughart II (eds.) The Oxford Handbook in Managerial Economics, Oxford University Press, 2013, ISBN: 9780199782956, Ch.14: 302–324.

    Heimer, O. and O. Shy. "Code-sharing Agreements, Frequency of Flights, and Profits Under Parallel Operation." In: D. Lee (ed.) Advances in Airline Economics, Vol. 1: Competition Policy and Antitrust. Elsevier; 2006, ISBN: 0-444-51843-6, Ch.7: 163–181.

    Gayer, A. and O. Shy. "Copyright Enforcement in the Digital Era." In: G. Illing and M. Peitz (eds.) Industrial Organization and the Digital Economy, MIT Press, 2006: ISBN: 0-262-09041-4, Ch.8: 229–240.

    Shy, O. "Industrial Organization." In: A. Kuper and J. Kuper (eds.) The Social Science Encyclopedia, Routledge, 2005, third edition; ISBN: 0415-108292.

    Shy, O. "The Economics of Copy Protection in Software and Other Media." In: Kahin, B. and H. Varian (eds.) Internet Publishing and Beyond: The Economics of Digital Information and Intellectual Property, MIT Press, 2000; ISBN: 0-262-61159-7; Ch.5: 99–113.

    Berechman, J. and O. Shy. "The Structure of Airline Equilibrium Networks." In: J. van den Bergh, P. Nijkamp, and P. Rietveld (eds.) Recent Advances in Spatial Equilibrium Modelling: Methodology and Applications, Springer, 1996; ISBN: 3-540-60708-0; Ch.7: 138–155.