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Quality certification is a common tool to reduce asymmetric information and enhance trust in marketplaces. Should the certificate focus on seller inputs such as fast shipping, or include output measures such as consumer ratings? In theory, incorporating output measures makes the certificate more...
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Artificial intelligence (AI) is surpassing human performance in a growing number of domains. However, there is limited evidence of its economic effects. Using data from a digital platform, we study a key application of AI: machine translation. We find that the introduction of a machine...
Persistent link: https://www.econbiz.de/10012912525
Artificial intelligence (AI) is surpassing human performance in a growing number of domains. However, there is limited evidence of its economic effects. Using data from a digital platform, we study a key application of AI: machine translation. We find that the introduction of an upgraded machine...
Persistent link: https://www.econbiz.de/10012915217
Digital platforms like Uber can enhance market transparency and mitigate moral hazard via ratings of buyers and sellers, real-time monitoring, and low-cost complaint channels. We compare driver choices at Uber with taxis by matching trips so they are subject to the same optimal route. We also...
Persistent link: https://www.econbiz.de/10012480668
We study consumer response towards sponsored search advertising and how to improve advertising performance on a large e-commerce platform. Our research design is based on a field experiment which randomizes the salience of ad disclosure to consumers, and a natural experiment which eradicates a...
Persistent link: https://www.econbiz.de/10013427672
Digital platforms sometimes offer incentives to a subset of sellers to nudge behavior, possibly affecting the behavior of all sellers in the equilibrium. In this paper, we study a policy change on a large e-commerce platform that offers financial incentives only to platform-certified sellers...
Persistent link: https://www.econbiz.de/10013427680
Despite the popularity of ridesharing, there is limited empirical evidence on how ridesharing activities differ across regions with different levels of accessibility and the implication for consumers. In this paper, we study the market for rides across New York City neighborhoods. We construct a...
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