Entry into dynamic environments can be challenging for firms. We study if, and under which circumstances, firms can use strategic flexibility to enter markets with variable demand. In the airline industry, we find broad support for our hypotheses. We observe less entry with more demand...

Data is often at the core of digital products and services, especially when related to online advertising. This has made data protection and privacy a major policy concern. When surfing the web, consumers leave digital traces that can be used to build user profiles and infer preferences. We...

We run a field experiment with a major news outlet to quantify the economic returns to data and informational externalities associated with algorithmic recommendation. Automated recommendation can outperform a human editor in terms of user engagement, though this crucially depends on the amount...

In markets with long tails and thousands of products, like recorded music, consumers cannot possibly be aware of every product. We analyze how record labels use single releases as a strategic instrument to attract consumer attention in a competitive environment. In particular, we study how the...

In this paper we evaluate the heterogeneous effects of online copyright enforcement. We ask whether the unexpected shutdown of the popular file hosting platform Megaupload had a differential effect on box office revenues of wide-release vs. niche movies. Identification comes from a comparison of...

We empirically address value appropriation hazards when firms enter into external relationships in search for innovation. Using firm-level data from Germany we document a positive link between R&D outsourcing and IP infringement. In line with theory we show that this effect varies with the...

We run a field experiment to quantify the economic returns to data and informational externalities associated with algorithmic recommendation in the context of online news. Our results show that personalized recommendation can outperform human curation in terms of user engagement, though this...

In this paper, we study the effects of a self-regulatory effort, orchestrated by the European Commission, that aims to reduce advertising revenues for publishers of copyright infringing content. Historical data lets us follow how the third-party advertising and tracking services associated with...