Price discrimination has raised numerous public concerns and many regulatory agencies have enacted fairness regulations on prices to curb such controversial practices. In this work, we find that, relative to non-regulation, appropriate regulation may alleviate the cut-throat price competition...

Platforms play an essential role in the modern economy. At the same time, algorithms are becoming more widely used for pricing and other business functions. Previous literature examined algorithmic pricing, but not in the context of network effects and platforms. Moreover, platform competition...

We study the design of online platforms that aggregate information and facilitate transactions. Two different designs can be observed in the market: revealing platforms that disclose the identity of transaction partners (e.g. Booking) and anonymous platforms that do not (e.g. Hotwire). To...

This paper investigates the relationship between technical progress, competition, and the impact on consumer's surplus and welfare. A Hotelling model in symmetrical duopoly with full market coverage is introduced. Firms invest in order to improve the quality of their offer and thus consumers'...

The profitability of a firm is jointly determined by it's organizational structure and the market structure. To explore the effects of market factors on optimal organizational structure we develop a real-time information processing model of a multi unit firm in a dynamic duopoly environment. Our...

We study how firms differ from their competitors using new time-varying measures of product differentiation based on text-based analysis of product descriptions from 50,673 firm 10-K statements filed yearly with the Securities and Exchange Commission. This year-by-year set of product...

The presumed connection between causal ambiguity and sustained, capabilities-based performance advantages is well-known to strategy researchers. This paper presents the first formal examination of this connection. I provide a precise distinction between the intrinsic, or potential, level of...

This paper models a generalized form of monopolistic competition such that consumers are differentiated horizontally by taste while firms are differentiated vertically by quality location. Consumers have quadratic transportation costs of disutility from consuming a non-ideal brand, and firms are...

In the economic literature on market competition, firms are often modelled as individual decision makers and the internal organization of the firm is neglected (unitary player assumption). However, as the literature on strategic delegation suggests, one can not generally expect that the behavior...