This paper analyzes search frictions in online markets using novel data on the web browsing and purchasing behavior of a large panel of consumers. This dataset is unique in that consumer search behavior prior to a transaction is observed. Although recent models have shown that large price...

Online peer-to-peer communities and online social networks have become increasingly popular. In particular, the recent boost of online peer-to-peer communities leads to exponential growth in sharing of user-contributed content which have brought profound changes to business and economic...

We study optimal cartel prices in a two-sided market. We present a simple model showing that prices above the two-sided monopoly price may prevail on one side of a two-sided market as a means to enhance the sustainability of the cartel. We prove that in such a case a higher benefit from the...

This paper investigates the patent licensing networks formed by competing firms. Assuming that licensing agreements can involve the payment of fixed fees only and that firms compete à la Cournot, we show that the complete network is always bilaterally efficient and that the monopoly network is...

I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative and...

How has the Internet affected newspaper content? We build a dataset that matches newspaper readability measures to Internet penetration at the county-year level from 2000-2008. We document a positive relationship between Internet penetration and newspaper readability. This result appears...

The YouTube platform reduces fixed entry costs for local artists but also lowers the cost of access to international superstars. The net effect is an empirical question. We study the effect of YouTube on the market for music, focusing on converging tastes for international hits. We consider...

In many industries, consumers rely on recommendations by an intermediary when choosing between competing products. In this paper, we look at how the existence of contracts between firms and intermediaries affects the quality of the advice received by consumers, and firms' incentives to invest in...

Finding information about privacy practices can be difficult: privacy policies often do not present this information in an accessible way. People typically do not know how or for what purpose their personal information, gathered online, will be used. When asked, people frequently express...

This paper analyzes the role of individual heterogeneity in the diffusion of a network technology. Using a detailed data set on the adoption of a new videoconferencing technology within a firm, we estimate a structural model of technology adoption and use. We find that employees have significant...