Showing 1 - 10 of 94
This paper analyzes a two-sided market model in which platforms compete for advertisers and users. Platforms are differentiated from the users' perspective but are homogenous for advertisers. I show that, although there is Bertrand competition for advertisers, platforms obtain positive margins...
Persistent link: https://www.econbiz.de/10011051665
one. We find that information frictions lead to price dispersion. When the two goods are complements, their prices will … empirical evidence which suggests that simultaneous price discounts of complements are infrequent. If the goods are substitutes … complements, retailers earn higher profits than in the one-good model through taxing captive consumers with a high overall price …
Persistent link: https://www.econbiz.de/10010573881
Motivated by the unprecedented availability of consumer information on the Internet, we characterize the winners and losers from potential privacy regulation in the context of four commonly-used oligopoly models: a linear city model, a circular city model, a vertical differentiation model, and a...
Persistent link: https://www.econbiz.de/10010786471
We analyze the market for online and offline media in a model of two-dimensional spatial competition where media outlets sell content and advertising space. Consumer preferences are distributed along the style and type of news coverage where the distance costs may vary across dimensions. For...
Persistent link: https://www.econbiz.de/10011051638
We examine the incentives of a monopolistic search engine, funded by advertising, to provide reliable search results. We distinguish two types of search results: sponsored and organic (not-paid-for). Organic results are most important in searches for online content, while sponsored results are...
Persistent link: https://www.econbiz.de/10011264249
Search engines face an interesting tradeoff in choosing the way to display their results. While providing high quality unpaid, or “left side” results attracts users, doing so can also cannibalize the revenue that comes from paid ads on the “right side”. This paper examines this tradeoff,...
Persistent link: https://www.econbiz.de/10011051655
We examine the impact of the licensing policies of one or more upstream owners of essential intellectual property (IP hereafter) on the variety offered by a downstream industry, as well as on consumers and social welfare. When an upstream IP monopoly increases the number of licenses, it enhances...
Persistent link: https://www.econbiz.de/10010594864
In January 2011, a price regulation was established in the Austrian gasoline market which prohibits firms from raising their prices more than once per day. Similar restrictions have been discussed in New York State and Germany. Despite their intuitive appeal, this article argues that...
Persistent link: https://www.econbiz.de/10010738081
We analyze firms' entry, production and hedging decisions under imperfect competition. We consider an oligopoly industry producing a homogeneous output in which risk-averse firms face an entry cost upon entering the industry, and then compete in Cournot with one another. Each firm faces...
Persistent link: https://www.econbiz.de/10010906759
Markets for many commodities are characterized by imperfectly competitive production as well as substantial storage by speculators who are attracted by significant price volatility. We examine how speculative storage affects the behavior of an oligopoly producing a commodity for which demand is...
Persistent link: https://www.econbiz.de/10010906761