AI summary · arXiv: 2011.03879v1 · econ.TH
Platform-Mediated Competition
The essentials
- Cross-group externalities and network effects are well-studied factors in two-sided platform markets
- Within-group externalities arising from many-to-many matchings on a platform have received less attention
- Such externalities occur when the value to an agent of matching with another agent depends on the set of agents with which the latter is matched
- The paper characterizes platform-optimal matchings in a general model of many-to-many matching with within-group externalities
- The author proves a set of comparative statics results for optimal matchings and demonstrates how these can be used to analyze welfare effects resulting from changes such as vertical integration by the platform, horizontal mergers between firms on one side of the market, and modifications in the platform's information structure
- The paper explores market structure and regulation in two detailed applications: monopolistic competition between firms on a retail platform like Amazon, and how multi-channel video program distributors (MVPDs) negotiate transfer fees with television channels and bundle them to sell to individuals
- This research sheds light on an important yet understudied aspect of many-to-many matching platforms: within-group externalities.
Key points written by AI: they may contain errors, check them against the paper.
Ask questions about this paper to our AI assistant
How to chat with this paper? Illustrated guide
You can also chat with multiple papers at once here.
⚠The license of the paper does not allow us to build upon its content and the AI assistant only knows about the paper metadata rather than the full article.
Keep this conversation — a free account saves your questions and answers, your collections of papers and your alerts.
Create a free accountTools for this paper
Advanced tools Premium
For researchers who follow a field closely: citation alerts, journal-club slides, version comparison and Zotero export. Discover Premium
Papers around this one
See them on a mapRanked by how close their title and abstract are to this paper’s. Select some to read them together.
Closest papers
-
From Doubt to Devotion: Trials and Learning-Based PricingTan Gan, Nicholas Wu · 2023 · Theoretical Economics · AI summary available
Abstract
An informed seller designs a dynamic mechanism to sell an experience good. The seller has partial information about the product match, which affects the buyer's private consumption experience. We characterize equilibrium mechanisms of this dynamic informed principal problem. The belief gap between the informed seller and the uninformed buyer, coupled with the buyer's learning, gives rise to mechanisms that provide the skeptical buyer with limited access to the product and an option to upgrade if the buyer is swayed by a good experience. Depending on the seller's screening technology, this takes the form of free/discounted trials or tiered pricing, which are prevalent in digital markets. In c…
-
Benefits of marriage as a search strategyDavi B. Costa · 2021 · Theoretical Economics · AI summary available
Abstract
We propose and investigate a model for mate searching and marriage in large societies based on a stochastic matching process and simple decision rules. Agents have preferences among themselves given by some probability distribution. They randomly search for better mates, forming new couples and breaking apart in the process. Marriage is implemented in the model by adding the decision of stopping searching for a better mate when the affinity between a couple is higher than a certain fixed amount. We show that the average utility in the system with marriage can be higher than in the system without it. Part of our results can be summarized in what sounds like a piece of advice: don't marry the …
-
The Core of an Economy with an Endogenous Social Division of LabourRobert P. Gilles · 2018 · Theoretical Economics · Not summarized yet
Abstract
This paper considers the core of a competitive market economy with an endogenous social division of labour. The theory is founded on the notion of a "consumer-producer", who consumes as well as produces commodities. First, we show that the Core of such an economy with an endogenous social division of labour can be founded on deviations of coalitions of arbitrary size, extending the seminal insights of Vind and Schmeidler for pure exchange economies. Furthermore, we establish the equivalence between the Core and the set of competitive equilibria for continuum economies with an endogenous social division of labour. Our analysis also concludes that self-organisation in a social division of labo…
-
Gacha Game: When Prospect Theory Meets Optimal PricingTan Gan · 2022 · Theoretical Economics · AI summary available
Abstract
I study the optimal pricing process for selling a unit good to a buyer with prospect theory preferences. In the presence of probability weighting, the buyer is dynamically inconsistent and can be either sophisticated or naive about her own inconsistency. If the buyer is naive, the uniquely optimal mechanism is to sell a ``loot box'' that delivers the good with some constant probability in each period. In contrast, if the buyer is sophisticated, the uniquely optimal mechanism introduces worst-case insurance: after successive failures in obtaining the good from all previous loot boxes, the buyer can purchase the good at full price.
-
The effects of incentives, social norms, and employees' values on work performanceMichael Roos, Jessica Reale, Frederik Banning · 2021 · Theoretical Economics · AI summary available
Abstract
This agent-based model contributes to a theory of corporate culture in which company performance and employees' behaviour result from the interaction between financial incentives, motivational factors and endogenous social norms. Employees' personal values are the main drivers of behaviour. They shape agents' decisions about how much of their working time to devote to individual tasks, cooperative, and shirking activities. The model incorporates two aspects of the management style, analysed both in isolation and combination: (i) monitoring efforts affecting intrinsic motivation, i.e. the firm is either trusting or controlling, and (ii) remuneration schemes affecting extrinsic motivation, i.e…
-
The Relationship between Consumer Theories with and without Utility MaximizationYuhki Hosoya · 2024 · Theoretical Economics · AI summary available
Abstract
To study the assumption that the utility maximization hypothesis implicitly adds to consumer theory, we consider a mathematical representation of pre-marginal revolution consumer theory based on subjective exchange ratios. We introduce two axioms on subjective exchange ratio, and show that both axioms hold if and only if consumer behavior is consistent with the utility maximization hypothesis. Moreover, we express the process for a consumer to find the transaction stopping point in terms of differential equations, and prove that the conditions for its stability are equal to the two axioms introduced in the above argument. Therefore, the consumer can find his/her transaction stopping point if…
-
Wealth Redistribution and Mutual Aid: Comparison using Equivalent/Nonequivalent Exchange Models of EconophysicsTakeshi Kato · 2022 · Entropy 2023, 25(2), 224 · AI summary available
Abstract
Given the wealth inequality worldwide, there is an urgent need to identify the mode of wealth exchange through which it arises. To address the research gap regarding models that combine equivalent exchange and redistribution, this study compares an equivalent market exchange with redistribution based on power centers and a nonequivalent exchange with mutual aid using the Polanyi, Graeber, and Karatani modes of exchange. Two new exchange models based on multi-agent interactions are reconstructed following an econophysics approach for evaluating the Gini index (inequality) and total exchange (economic flow). Exchange simulations indicate that the evaluation parameter of the total exchange divi…
-
Designing binary social decisionsKirneva Margarita, Núñez Matías · 2023 · Theoretical Economics · AI summary available
Abstract
We design a mechanism, Majority voting with random checks, that fully implements the majority rule for binary social decisions. After a simultaneous vote over the two options, the winner must be confirmed by at least one agent from a random sample of agents voting sequentially. The mechanism incentivizes agents to act truthfully as a lottery is held if no agent confirms the outcome. Our mechanism also reduces by almost half the number of stages required for implementation. Furthermore, we extend our results to incomplete information and abstention and introduce additional implementation mechanisms based on the concept of network formation
Go further
How are these papers found?
We compare the title and abstract of this paper with those of every paper summarized on this site, and with the papers Semantic Scholar recommends, those it cites and those citing it (for a much-cited paper, its most recent citations and, from OpenAlex, the most cited ones). Among the prior work and the follow-ups, the papers that use each other in depth, a method it uses and the much-cited follow-ups come a little higher. The levels (very close, close, related) come from the similarity of the texts, not from a judgment of quality; * marks a paper without an abstract, compared by its title. The sentence under a paper is written by an AI from the two abstracts: check it in the papers. A paper marked not relevant by three readers leaves the list.
For now only among the papers summarized on this site: search again to add the prior work, the follow-ups and Semantic Scholar’s recommendations.
The previous summary was created more than a year ago and can be re-run (if necessary) by clicking on the Run button below.
⚠The license of this specific paper does not allow us to build upon its content and the summarizing tools will be run using the paper metadata rather than the full article. However, it still does a good job, and you can also try our tools on papers with more open licenses.
Disclaimer: The AI-based summarization tool and virtual assistant provided on this website may not always provide accurate and complete summaries or responses. We encourage you to carefully review and evaluate the generated content to ensure its quality and relevance to your needs.