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This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for social image. The market outcome features partial pooling and product differentiation that is not driven by heterogeneous valuations for quality but by image concerns. A...
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Platforms often display their products ahead of third-party products in search. Is this due to consumers preferring platform-owned products or platforms engaging in self-preferencing by biasing search towards their own products? What are the welfare implications? I develop a structural model of...
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observed by the incumbent and some fraction of informed consumers. This leads to price signalling rivalry between the … outcome. -- Quality uncertainty ; Signalling ; Oligopoly …
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We study a hybrid marketplace where a vertically integrated platform competes with a seller in a horizontally differentiated downstream market. The platform has a data advantage and can price discriminate consumers, whereas the seller cannot. Our analysis shows that, by properly setting the...
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We develop a theory of collective brand reputation for markets in which product quality is jointly determined by local … yields a theory of optimal brand size and revenue sharing that applies to platform markets, franchising, licensing, umbrella …
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