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Digital platforms are increasingly the subject of regulatory scrutiny. In comparison to multiple competitors, a single platform may increase consumer welfare if network effects are large or may decrease welfare due to higher prices or reduction in platform variety. We study the net effect of...
Persistent link: https://www.econbiz.de/10012482266
The theoretical literature on platforms and network effects predicts that the initial growth and takeoff of a platform crucially depends on the market's expectations of the future installed base. This paper tests this claim, reporting on a field experiment in which invitations to join a newly...
Persistent link: https://www.econbiz.de/10012482543
-guest rules can drive demand and supply to and from the platform, as a function of the local platform competition between Airbnb … and VRBO. Our results suggest that platform competition sometimes dampens a platform wide pro-guest rule and sometimes … reinforces it, often with heterogeneous effects on different hosts. This implies that platform competition does not necessarily …
Persistent link: https://www.econbiz.de/10012585362
This paper estimates the magnitude and distribution of surplus from the knowledge worker gig economy using data from an online labor market. Labor demand elasticities determine workers' wages, and buyers' past market experience shapes both their job posting frequency and hiring rates. We find...
Persistent link: https://www.econbiz.de/10012696386
Quality certification is a common tool to reduce asymmetric information and enhance trust in marketplaces. Should the certificate focus on seller inputs such as fast shipping, or include output measures such as consumer ratings? In theory, incorporating output measures makes the certificate more...
Persistent link: https://www.econbiz.de/10012814449
Platform marketplaces can potentially steer buyers to certain sellers by recommending or guaranteeing those sellers. Money-back guarantees--which create a direct financial stake for the platform in seller performance--might be particularly effective at steering, as they align buyer and platform...
Persistent link: https://www.econbiz.de/10012479867
As technology platforms have created new markets and new ways of acquiring information, economists have come to play an increasingly central role in tech companies - tackling problems such as platform design, strategy, pricing, and policy. Over the past five years, hundreds of PhD economists...
Persistent link: https://www.econbiz.de/10012480716
Global e-commerce platforms present new export opportunities for small and medium-sized enterprises in developing countries by significantly lowering the entry barriers of exporting. However, the lack of market selection can lead to a large number of online firms competing for consumers'...
Persistent link: https://www.econbiz.de/10012482319
Digital labor markets are rapidly expanding and connecting companies and contractors on a global basis. We review the environment in which these markets take root, the micro- and macro-level studies of their operations, their ongoing evolution and recent trends, and perspectives for undertaking...
Persistent link: https://www.econbiz.de/10012455283
data from eBay to estimate a model of consumer search and price competition when retailers offer homogeneous goods. We find …
Persistent link: https://www.econbiz.de/10012458251