Showing 1 - 10 of 46
We develop a model of dynamic platform formation under positive platform externalities. Users can switch between an incumbent and entrant platforms, switching opportunities arise stochastically and users can choose whether to accept or reject an opportunity to switch. For homogeneous users, we...
Persistent link: https://www.econbiz.de/10011141095
We analyze firms' incentives to bundle and tie in the telecommunications industry. As a first step, we develop a discrete-choice demand model where firms sell products that may combine several services in bundles, and consumers choose assortments of different types of products available from...
Persistent link: https://www.econbiz.de/10010905449
We study bilateral cross-licensing agreements among N( 2) firms that engage in competition after the licensing phase. It is shown that the most collusive cross-licensing royalty, i.e. the one that allows the industry to achieve the monopoly profit, is sustainable as the outcome of bilaterally...
Persistent link: https://www.econbiz.de/10010698673
We use variation in wind speeds at surfing locations in Switzerland as exogenous shifters of users' propensity to post content about their surfing activity onto an online social network. We exploit this variation to test whether users' social ties on the network have a causal effect on their...
Persistent link: https://www.econbiz.de/10008509379
This paper proposes methods for identifying indirect network effects with dynamically optimizing consumers purchasing a durable hardware good and associated software. We apply this model to data drawn from the DVD player and titles markets. We observe model-level prices, sales and...
Persistent link: https://www.econbiz.de/10008525324
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...
Persistent link: https://www.econbiz.de/10005459403
How did the diffusion of the Internet affect performance and product quality in the airline industry? We argue that the shift to online distribution channels has changed the way airlines compete for customers - from an environment in which airlines compete for space at the top of travel...
Persistent link: https://www.econbiz.de/10010905458
As online information availability for products and services is increasing and as buyers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce buyer uncertainty. This article argues that today's firms should view...
Persistent link: https://www.econbiz.de/10010905465
We consider a structural model of demand and supply where firms endogenously offer vertically differentiated products and exercise second-degree price discrimination. We apply this model to the smartphone industry and quantify the welfare effects of price discrimination and competition. We use...
Persistent link: https://www.econbiz.de/10010933639
How has the Internet affected newspaper content? We build a dataset that matches newspaper readability measures to Internet penetration at the county-year level from 2000 – 2008. We document a positive relationship between Internet penetration and newspaper readability. This result appears...
Persistent link: https://www.econbiz.de/10010933640