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Why do markets boom and crash? Why do fads and social norms start and end? The answer is found in a branch of social science literature called “cascade theory.” Cascade theory explains the observable human behavior of imitation: following the actions of someone else simply because one has...
Persistent link: https://www.econbiz.de/10013116988
The Internet has dramatically reduced search costs for customers through tools such as shopbots. The conventional … Internet, where email targeting and the ability to track and record customer behavior are institutional features that … the high search cost. On the Internet, the amount of time to search across multiple stores is minimal (say zero). Now …
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Customer data increasingly enables online marketplace to identify buyers' preferences and provide individualized product information. I characterize the impact of such ex-ante information on buyer surplus and seller surplus. In my model, a marketplace provides an ex-ante signal about buyers'...
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the Internet traffic and the Web graph indicated the scale-free structure of the Web and other Complex Networks. Going a …
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We provide a model to study the effect of improving the quality of the filters that users use, and the increase of the cost of mailing spam messages, on the total number of messages that spammers send. We show that increasing the cost of mailing spam messages have the unequivocal effect of...
Persistent link: https://www.econbiz.de/10003779294