The aim of this research is to analyze whether and when ratings are informative signals about the quality of movies. The ratings data of Netflix is used to fit a structural Bayesian learning model. This model links revealed experience utilities of raters, previous consumers, to the product...

We study whether and how contractual arrangements (fixed price vs. time-and-materials contracts) change the effect of reputation, certification, and language characteristics on the chances of winning outsourcing contracts. Using a comprehensive dataset from an online outsourcing marketplace, we...

We analyze the linking and versioning strategies of a media firm when facing competition from blogs, search engines and news aggregators. First, we show that when the publisher competes against a blog it is less likely to release a “fighting version” if this generates significant spillovers...

Online applications and services automate communications and transactions between firms and consumers, promising large efficiency gains. However, consumers have been slow to use these online technologies intensively, despite widespread adoption of the internet. Customers frequently undergo a...

The concept of a ‘global digital divide’ is now common, and many cross-country studies of determinants of differences in computer and Internet penetration have been performed. The main conclusions and policy implications from these studies are relatively blunt - get richer, have more...

Psychology studies of the effects of playing video games have found emotional responses and physical reactions associated with reinforced violent and anti-social attitudes. It is not clear, however, whether these markers are associated with increases in one's preferences for anti-social...

Media reports on incidences of abuse on the internet, particularly amongst teenagers, are growing at an alarming rate causing much concern among parents of teenagers and legislations aimed at regulating internet use among teenagers. Past studies have found that one in five youth were exposed to...

We consider software developers who can either work on an open source project or on a closed source project. The former provides a publicly available signal about their talent, whereas the latter provides a signal only observed by their employer. We show that a talented employee may initially...

Starting in 1998, the E-Rate program has provided $2.25 billion to subsidize Internet access in schools and libraries serving low income populations in the US. I analyze the effect of E-Rate subsidies on educational outcomes for Texas high schools over the 1994-2003 time period. Consistent with...

The paper analyzes and compares the investment incentives of platform and application developers for Linux and Windows. We find that the level of investment in applications is larger when the operating system is open source rather than proprietary. The comparison of the levels of investment in...