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We analyze platform competition where user data is collected to improve adtargeting. Considering that users incur … overall competition is weak or if targeting benefits are low, too much private data is collected, and vice-versa. Further, we … find that softer competition on either market side leads to more data collection, which implies substitutability between …
Persistent link: https://www.econbiz.de/10011897071
Brokesova, Deck and Peliova [Int. J. Ind. Organ. 37 (2014) 229-237] have shown that comparative static results from two-period behavior-based pricing models hold in laboratory experiments, but they observed significant differences from point predictions. We report findings in conformity with...
Persistent link: https://www.econbiz.de/10013191564
This paper analyzes consumers' privacy choice concerning their private data and firms' ensuing pricing strategy. The General Data Protection Regulation passed by the European Union in May 2018 allows consumers to decide whether to reveal private information in the form of cookies to an online...
Persistent link: https://www.econbiz.de/10012150165
This paper analyzes a market in which two horizontally differentiated firms compete by setting menus of two-part tariffs, and in which some consumers are not informed about the linear per-unit price component. We consider two regulatory interventions that limit firms’ ability to price...
Persistent link: https://www.econbiz.de/10012385361
This article studies the effects of consumer information on the intensity of competition. In a two dimensional duopoly …
Persistent link: https://www.econbiz.de/10012425308
I analyze a model of directed search in which a consumer inspects a finite number of products sharing attributes with each others. The consumer discovers her valuation for the attributes of the inspected products and adapts her search strategy based on what she has learned. The consumer...
Persistent link: https://www.econbiz.de/10014566747
We study the interplay between quality provision and consumer search in a search market where firms may design products of inferior quality to promote them to naive consumers who fail to fully understand product characteristics. We derive an equilibrium in which both superior and inferior...
Persistent link: https://www.econbiz.de/10014476771
-to-head competition with the seller, regardless of the level of horizontal differentiation. Mandating data-sharing, which allows the … competition in the downstream market. We then show that banning the hybrid business model and forbidding the use of data for price … competition comes from the platform's business model rather than from its information advantage. …
Persistent link: https://www.econbiz.de/10014631826
Persistent link: https://www.econbiz.de/10015055663
I investigate whether two mechanisms leading to biased beliefs about success, overconfidence and competition neglect … making their decision. Second, I vary whether the competition group consists of all potential competitors or only of …
Persistent link: https://www.econbiz.de/10011900069