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We study a game in which two firms compete in quality to serve a market consisting of consumers with different initial consideration sets. If both firms invest below a certain threshold, they only compete for those consumers already aware of their existence. Above this threshold, a firm is...
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large digital platforms that generate a combination of positive and negative welfare effects for society, including data … with this. Platforms are necessary intermediaries to generate the social welfare or network externalities from data …. However, the economic role of data-driven platforms is ambivalent. On the one hand, platforms enable society to benefit from …
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