Taisei Noda

I’m a Ph.D Candidate at Department of Economics Rice University. My research interests include Financial Economics, Empirical Industrial Organization, and Applied Microeconomics. My recent work focuses on the industrial organization of financial markets, such as mutual funds and IPO underwriting, using structural estimation approaches.

Please contact me at taisei.noda(at)rice.edu.

Job Market Paper

Cannibalization and Scope Economies within Fund Families: The Impact of Passive Investing on Active Fund Fees

Abstract

This paper analyzes how the rise of passive funds, such as index funds and ETFs, affects price competition in the mutual fund industry using structural demand estimation. Modeling mutual fund companies as multi-product producers, it considers strategic pricing and cost synergies from managing both fund types. Results show that multi-product families set higher fees by internalizing competition within the family, raising fees by 1–2 basis points, but cost synergies reduce fees by 35 basis points for active funds and 5 for passive funds.