Data, Competition, and Digital Platforms
We analyze digital markets where a monopolist platform uses data to match multiproduct sellers with heterogeneous consumers who can purchase both on and off the platform. The platform sells targeted ads to sellers that recommend their products to consumers and reveals information to consumers about their values. The revenue-optimal mechanism is a managed advertising campaign that matches products and preferences efficiently. In equilibrium, sellers offer higher qualities at lower unit prices on than off the platform. Privacy-respecting data-governance rules such as organic search results or federated learning can lead to welfare gains for consumers.
Code (0)
등록된 구현이 없습니다.
Tasks
Federated LearningSimilar Papers 제목 키워드 기반
The New Digital Platforms: Merger Control in Pakistan
The Pakistan competition policy, as in many other countries, was originally designed to regulate business conduct in traditional markets and for tangible goods and services. However, the development and proliferation of …
Performative Power
We introduce the notion of performative power, which measures the ability of a firm operating an algorithmic system, such as a digital content recommendation platform, to cause change in a population of participants. We …
Competition, Alignment, and Equilibria in Digital Marketplaces
Competition between traditional platforms is known to improve user utility by aligning the platform's actions with user preferences. But to what extent is alignment exhibited in data-driven marketplaces? To study this qu…
Competing Bandits: The Perils of Exploration Under Competition
Most online platforms strive to learn from interactions with users, and many engage in exploration: making potentially suboptimal choices for the sake of acquiring new information. We study the interplay between explorat…
Multi-Armed BanditsMeasuring Self-Preferencing on Digital Platforms
Digital platforms use recommendations to facilitate exchanges between platform actors, such as trade between buyers and sellers. Aiming to protect consumers and guarantee fair competition on platforms, legislators increa…
Fairness