Similar Search Results

Where is the value added? : trade liberalization and production networks

Aichele, Rahel; Heiland, Inga - 2016

theory-based measures for production networks from a multi-sector gravity model with inter-sectoral linkages to analyze the …

Persistent link: https://www.econbiz.de/10011517926

The network origins of the gains from trade

Bosker, Maarten; Westbrock, Bastian - 2019

In this paper, we develop a network perspective on the welfare gains from trade in today's internationally fragmented supply chains. Towards this end, we study a Ricardian trade model featuring trade in final and intermediate products, and introduce a novel comparative statics approach to...

Persistent link: https://www.econbiz.de/10011986141

Breaking invisible barriers : does fast internet improve access to input markets?

Demir, Banu; Javorcik, Beata K. Smarzynska; Panigrahi, … - 2024

This paper explores how improved internet infrastructure impacts supply chains and economic activity, focusing on Türkiye. Using the expansion of fiber-optic networks and firm-to-firm transaction data, we find that better connectivity shifts input sourcing to well-connected regions and...

Persistent link: https://www.econbiz.de/10015164646

AI-generated production networks : measurement and applications to global trade

Fetzer, Thiemo; Lambert, Peter; Feld, Bennet; Garg, Prashant - 2024

This paper leverages generative AI to build a network structure over 5,000 product nodes, where directed edges represent input-output relationships in production. We layout a two-step ‘build-prune’ approach using an ensemble of prompt-tuned generative AI classifications. The ’build’ step...

Persistent link: https://www.econbiz.de/10015125507

Collusion by algorithm: the role of unobserved actions

Martin, Simon; Rasch, Alexander - 2022

We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....

Persistent link: https://www.econbiz.de/10013093034

Collusive compensation schemes aided by algorithms

Martin, Simon; Schmal, Wolfgang Benedikt - 2021

Sophisticated collusive compensation schemes such as assigning future market shares or direct transfers are frequently observed in detected cartels. We show formally why these schemes are useful for dampening deviation incentives when colluding firms are temporary asymmetric. The relative...

Persistent link: https://www.econbiz.de/10012698813

Bao, Yongping; Danwitz, Ludwig; Dvorak, Fabian; … - 2022

Algorithm-based decision support systems play an increasingly important role in decisions involving exploration tasks … the willingness of participants to follow the advice of a reinforcement learning algorithm depends on the fit between … their own exploration preferences and the algorithm's advice. We vary the weight that the algorithm places on exploration …

Persistent link: https://www.econbiz.de/10013482224

Crowding out the truth? : a simple model of misinformation, polarization, and meaningful social interactions

Germano, Fabrizio; Gómez, Vicenç; Sobbrio, Francesco - 2022 - This version: November 2022

This paper provides a simple theoretical framework to evaluate the effect of key parameters of ranking algorithms, namely popularity and personalization parameters, on measures of platform engagement, misinformation and polarization. The results show that an increase in the weight assigned to...

Persistent link: https://www.econbiz.de/10013413453

The spoils of algorithmic collusion : profit allocation among asymmetric firms

Martin, Simon; Normann, Hans-Theo; Püplichhuisen, Paul; … - 2025

We study the propensity of independent algorithms to collude in repeated Cournot duopoly games. Specifically, we investigate the predictive power of different oligopoly and bargaining solutions regarding the effect of asymmetry between firms. We find that both consumers and firms can benefit...

Persistent link: https://www.econbiz.de/10015186355

Strategic responses to algorithmic recommendations : evidence from hotel pricing

García, Daniel; Tolvanen, Juha; Wagner, Alexander K. - 2023

We study the interaction between algorithmic advice and human decisions using high-resolution hotel-room pricing data. We document that price setting frictions, arising from adjustment costs of human decision makers, induce a conflict of interest with the algorithmic advisor. A model of advice...

Persistent link: https://www.econbiz.de/10014444885