We develop a growth model that features the endogenous two-tier innovations of information carrier technology and production technology. Information carrier technology promotes production technology innovation and thus economic growth through improving the preservation and dissemination of...

We build a novel endogenous growth model with information carrier technology, in which knowledge may be lost in storage and dissemination. In the asymptotic balanced growth path equilibrium, we establish two main findings. First, the growth rate of information carrier technology and the...

We propose a theory of rational "Rush", emphasizing the quantity of rational over-investment in contrast to the theory of irrational price "Bubble". We illustrate an important friction when financing breakthrough innovations: non-excludability and spillover of uncertain knowledge due to...

The bargaining process between the platform and users has great impact on the pricing scheme and the successful establishment of a platform. When users receive utilities after paying a initial cost to join the platform, they face the risk of platform's aggressive pricing and are discouraged from...

The digital economy’s functioning hinges upon the close collaboration of various core elements. Data, as a pivotal production factor, derives its value not in isolation but rather from its intricate connection to physical media, like data processors and storage devices. This paper introduces a...

We build an endogenous growth model to study the optimal design of data rights in a data economy. Analysis shows that the duration of data rights protection can significantly affect long-term economic growth through three channels: consumers' privacy concerns, the incentives to develop processed...

The distribution of profit is an essential problem for sequential innovation but still lacks related empirical research. By exploring a unique dataset from a game live streaming platform, we are among the first researchers to empirically measure the contribution of upstream and downstream...