Abstract Digital markets provide firms with vast amounts of consumer data. Economists who have explored this phenomenon focused on how use data to implement price discrimination. Targeted advertising in context transmits different information consumers. However, is itself often valued by consumers, and can be viewed as a complement the advertised product. Such may also customized targeted. We i...

Firms in Eastern Europe and Central Asia that feel their competitors pressure them to innovate are more likely to innovate than firms do not. But price competition also reduces rents—and therefore the resources that firms have to invest. This paper assesses how competition policy affects these two different aspects of competition and how each affect innovation. It finds that enforcing competiti...