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This report provides an overview on the economics of attention intermediaries. It addresses the following questions: What are the economics of attention intermediaries? For competition policy, how should markets be defined and market power of attention intermediaries be assessed? What theories...
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This paper provides a description of the crowdfunding sector, considering investment- based crowdfunding platforms as … on cross-group and within-group external effects and asymmetric information on crowdfunding platforms … well as platforms in which funders do not obtain monetary payments. It lays out key features of this quickly developing …
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In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...
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In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of...
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