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Platform interoperability is considered a powerful tool to promote competition in digital markets when network effects are at play. We study the effect of interoperability on competition between two ad-financed platforms, allowing for endogenous multi-homing of consumers. When the platforms are...
Persistent link: https://www.econbiz.de/10014247369
We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by … comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to … misleading. We show that comparative advertising can be a signal in instances where generic advertising is not viable. …
Persistent link: https://www.econbiz.de/10005007232
buyer into a bad purchase through (costly) deceptive advertising. We characterize the equilibrium set of the game and argue …
Persistent link: https://www.econbiz.de/10011774615
contents upon which advertisers are likely to share similar preferences; ii) In advertising industries characterized by high …
Persistent link: https://www.econbiz.de/10011737150
We uniquely examine the relationship between firm-sponsored training and product quality competition. Using an oligopolistic model of both price and quality competition, we show that an increase in the sensitivity of demand to product quality will strengthen firms’ incentives to train their...
Persistent link: https://www.econbiz.de/10011741902
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
The presence of multiple sellers in the provision of (non-substitutable) complementary goods leads to outcomes that are worse than those generated by an integrated monopoly, a problem also known as the «tragedy of the anticommons». In this paper we identify some conditions under which the...
Persistent link: https://www.econbiz.de/10010786928
Public and private entities around the world are trying to induce the provision of higher-quality health care by adopting institutional arrangements intended to promote competition among care providers. I selectively survey and supplement the literature to show that an increase in...
Persistent link: https://www.econbiz.de/10011051639
A sizable literature has grown up in recent years focusing on two-sided markets in which economies of scale combined with complementarities between a platform and its associated `software' or `services' can generate indirect network effects (that is positive feedback between the number of...
Persistent link: https://www.econbiz.de/10005790001
We consider an oligopolistic market where firms compete in price and quality and where consumers have heterogeneous information: some consumers know both the prices, and quality of the products offered, some know only the prices, and some know neither. We show that if there are sufficiently many...
Persistent link: https://www.econbiz.de/10010573668