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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
We conduct a series of Cournot duopoly market experiments with a high number of repetitions and fixed matching. Our treatments include markets with (a) complete cost symmetry and complete information, (b) slight cost asymmetry and complete information, and (c) varying cost asymmetries and...
Persistent link: https://www.econbiz.de/10014487322
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
work, agents usually make their effort choice in response to competition and monetary incentives. At the same time, they …
Persistent link: https://www.econbiz.de/10011976073
A well-known theoretical result in the contest literature is that greater heterogeneity decreases performance of contestants because of the "discouragement effect." Leveling the playing field by favoring weaker contestants through bid-caps and favorable tie-breaking rules can reduce the...
Persistent link: https://www.econbiz.de/10011473683
We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched … competition increases overall welfare. In particular, this is always the case when the incentives for defection are high. …
Persistent link: https://www.econbiz.de/10013331070
We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched … competition increases overall welfare. In particular, this is always the case when the incentives for defection are high. …
Persistent link: https://www.econbiz.de/10014458804
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price. Therefore, the resulting market constellation depends...
Persistent link: https://www.econbiz.de/10008796592
We analyse a stylized model of the world grain market characterized by a small oligopoly of traders with market power on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect domestic food prices. Our first result is that export...
Persistent link: https://www.econbiz.de/10010230311
Industrial prices of goods and services are a function of costs of production and of the mark-up that firms apply on those costs. If these prices relate to goods that are traded internationally, they will also be influenced by the price at which those goods are exchanged in international...
Persistent link: https://www.econbiz.de/10011517928