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) newspapers in the Internet. For this purpose, we build a model of multiple issues which allows each newspaper to choose quality … leads each newspaper to specialize in terms of news coverage. In this case, its presence changes quality choices from … strategic substitutes to strategic complements. In the case of symmetric newspapers, this leads to an increase in the quality of …
Persistent link: https://www.econbiz.de/10010905459
consumers (user-positive consumption externalities) or, alternatively, when they incur costs from the consumption of … the costs of incompatibility may be imposed unilaterally and borne asymmetrically. For example, increased risks of death …
Persistent link: https://www.econbiz.de/10005760645
The literature on information aggregation predicts that market growth unambiguously reduces uncertainty about the value of traded goods. The results were developed within the classical model, which assumes that traders’ values for the exchanged good are determined by fundamental (common)...
Persistent link: https://www.econbiz.de/10010905451
The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model...
Persistent link: https://www.econbiz.de/10010905457
In this article I analyze the effects of a recent reform intended to decrease switching costs in the cellular industry … while keeping their wireless number. Its aim was the belief that lower switching costs would force incumbent companies to … costs using individual data on customers' bills and plans. I find that average price decreased by 7.2 percent. Moreover, my …
Persistent link: https://www.econbiz.de/10010905460
externalities, we show that a platform will tend to set the download limit at a lower level than would be welfare-maximizing; indeed …, in some instances, so low that no download limit is welfare superior to the limit the platform would set. Somewhat …
Persistent link: https://www.econbiz.de/10010905461
, we explain how product quality decisions influence future investments to reduce buyer uncertainty, and demonstrate how … firms should take this dependency into account to avoid over-investing in quality. We also show that firms, and especially … lower quality firms, can free ride on the product information already available in the market, and reduce their own …
Persistent link: https://www.econbiz.de/10010905465
This paper investigates how switching costs affect product compatibility and market dynamics in network industries. A … order to maintain its installed base advantage over its rival. Therefore, public policies that reduce switching costs in …
Persistent link: https://www.econbiz.de/10010905466
Online platforms, such as Google, Facebook, or Amazon, are constantly expanding their activities, while increasing the overlap in their service offering. In this paper, we study the scope and overlap of online platforms' activities, when they are endogenously determined. We model an expansion...
Persistent link: https://www.econbiz.de/10010905475
variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination …; (iii) variations in Quality of Service and price discrimination but no exclusive contracts; and (iv) no regulation: the … dynamic incentives to invest in improving the Quality of Service offered to each content provider. We provide a ranking …
Persistent link: https://www.econbiz.de/10010905480