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This paper analyzes the implications of advertising for firm dynamics and economic growth through its interaction with … advertising decisions. We calibrate the model to match several empirical regularities across firm size using U.S. data. Through a … novel interaction between R&D and advertising, our model provides microfoundations for the empirically observed negative …
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The Internet has evolved from Web 1.0, with static web pages and limited interactivity, to Web 2.0, with dynamic content that relies on user engagement. This change increased production costs significantly, but the price charged for Internet content has generally remained the same: zero. Because...
Persistent link: https://www.econbiz.de/10011891856
We build a novel dynamic model of two-sided markets which can be used to explore both intertemporal and cross-side pricing strategies of platform enterprise. This two-period model goes beyond the traditional two-sided market framework to examine the new intertemporal tradeoffs that a platform...
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because of the resources diverted away from R and D into advertising. But these mechanisms generate opposite level effects on …
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This paper discusses the relationship between the data economy and economic development and examines the benefits and challenges for emerging economies. In particular, it examines the market concentration and offers some reasoning for why we should expect that the data economy may end up...
Persistent link: https://www.econbiz.de/10012822519