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This paper presents an empirical examination of oligopoly pricing and consumer search. The theoretical model allows for sequential and non-sequential search and, using the theoretical restrictions firm and consumer behavior impose on the data, we study the empirical validity of the models. Two...
Persistent link: https://www.econbiz.de/10011451282
Researchers are increasingly able to observe consumers’ behavior prior to a purchase, such as their navigation through a store or website and the products they consider. Such pre-purchase (or search) data can be valuable to researchers in a variety of ways: as an additional source of...
Persistent link: https://www.econbiz.de/10014434021
This paper studies a model of search engine competition with endogenous obfuscation. Platforms may differ in the quality of their search algorithms. I study the impact of this heterogeneity in consumer surplus, seller profits and platform revenue. I show that the dominant platform will typically...
Persistent link: https://www.econbiz.de/10014444933
to search, which modifies the search composition of demand such that demand can become more elastic. At the same time …, the consumers who choose to search reduce their search intensity, which makes demand less elastic. Whether the effect on …
Persistent link: https://www.econbiz.de/10010383405
We study a platform's design of membership and transaction fees when sellers compete and buyers cannot observe the prices and features of goods without incurring search costs. The platform alleviates sellers' competition by charging them transaction fees that increase with sales revenue, and...
Persistent link: https://www.econbiz.de/10011721758
Empirical search cost estimates tend to increase in the size of the transaction, even if search can be done conveniently online. To assess this pattern systematically, we conduct an online search experiment in which we manipulate the price scale while keeping the physical search effort for each...
Persistent link: https://www.econbiz.de/10013342878
of demand functions in markets with evenly matched buyers and sellers. We finally discuss implications for market design …
Persistent link: https://www.econbiz.de/10011761525
Platforms may give preferential treatment to their own products in search results. Whether and how to regulate this self-preferencing behavior is an intensely debated antitrust issue. This paper identifies self-preferencing and quantifies its equilibrium welfare effects in Apple App Store. I...
Persistent link: https://www.econbiz.de/10013419345
competition between firms, and by reducing the amount of consumer data collected. We argue that merger policy guidelines should …
Persistent link: https://www.econbiz.de/10012628762
We set up a model to analyze the effects of mergers between sellers of complementary components where firms invest in … compatibility and can engage in bundling. We consider the impact of merger on prices, investment and consumer surplus. We also …
Persistent link: https://www.econbiz.de/10012001659