We study the impacts of social interactions on competing firms' quality differentiation, pricing decisions, and profit performance. Two forms of social interactions are identified and analyzed: 1) market expansion effect (MEE) -- the total market expands as a result of both firms' sales; and 2)...

Client recognition, a practice that recognizes repeat and new clients from their purchase histories to price discriminate among them, is currently prevalent in the two-sided platform markets. This paper examines the impact of client recognition on pricing strategy, platform profitability,...

This paper develops a tractable model for the computational and empirical analysis of infinite-horizon oligopoly dynamics. It features aggregate demand uncertainty, sunk entry costs, stochastic idiosyncratic technological progress, and irreversible exit. We develop an algorithm for computing a...

This paper develops a tractable model for the computational and empirical analysis of infinite-horizon oligopoly dynamics. It features aggregate demand uncertainty, sunk entry costs, stochastic idiosyncratic technological progress, and irreversible exit. We develop an algorithm for computing a...

This paper develops a tractable model for the computational and empirical analysis of infinite-horizon oligopoly dynamics. It features aggregate uncertainty, sunk entry costs, stochastic idiosyncratic technological progress, and irreversible exit. We develop a fast algorithm for computing a...

We characterize the equilibrium behavior in a broad class of competition models in which the competing firms' market shares are given by an attraction model, and the aggregate sales in the industry depend on the aggregate attraction value according to a general function. Each firm's revenues and...

Problem Definition: Thanks to the ubiquity of social media and the new business model of live-streaming e-commerce, online retailing has recently embraced increasing interactions among customers. Such interactions give rise to strong network effects, i.e., customers are attracted to purchase the...