This paper estimates the importance of network effects in the market for Yellow Pages. I estimate three simultaneous equations: consumer demand for usage of a directory, advertiser demand for advertising and a publisher’s first-order condition (derived from profitmaximizing behavior). Estimation shows that advertisers value consumer usage and that consumers value advertising, implying a network...

Since 2008, multiple smartphone platforms have launched versions of “app stores”, marketplaces where consumers can purchase and download software applications for their smartphone. This paper provides evidence for both demand and supply of “apps” using data on the size and composition of smartphone user bases and of the apps available for competing platforms. Results from the estimation of a st...

New information and communication technology (ICT) makes consumers better informed about available products, product quality and prices, which mitigates problems of asymmetric information. The entry of firms is facilitated, competition and economic efficiency is boosted and the market powers of households increased. Firms are likely to respond by increased product and price differentiation. The...

We study a competitive market for a homogeneous good, in which the only uncertainty concerns the number of identical sellers, who are sampled by a nite Poisson process from a continuum of potential participants. It is shown that, in equilibrium, there is price dispersion. Speci cally, prices conform to a Poisson process on an interval, which is a proper subset of that between the sellers' cost ...

Empirical work has drawn attention to the high degree of productivity differences within industries, and its role in resource allocation. This paper examines the allocational efficiency of such markets. Productivity differences introduce two new sources of potential inefficiency: selection of the right distribution of firms and allocation of the right quantities across firms. We show that these...

This paper develops a simple model of software piracy to analyze the short-run effects of piracy on software usage and the long-run effects on development incentives. We consider two types of costs associated with piracy: the reproduction cost that is constant across users and the degradation cost that is proportional to consumers’ valuation of the original product. We show that the effects of ...

in this study, in addition to estimating meat demand, live animal supply and marketing services supply for beef and lamb, economic behavior of marketing margin with respect to determinants of meat demand, live animal supply and marketing services supply have been evaluated for years 1998-2004. results indicate that, as examples, beef and lamb marketing margin elasticity with respect to feed pri...

Developing strategic areas utilizing existing potential will increase regional economic growth, overcome disparities, and reduce poverty. This study aims to determine the efficiency of district area development in reducing disparities poverty rates Dharmasraya Regency for 2016-2020 period. The results Data Envelopment Analysis (DEA) analysis, using assumption that input changes are directly pro...

ABSTRACT Despite regulators’ allegations that digital technology giants misuse their market power to earn abnormal profits, there is a dearth of systematic work on (1) whether digital-tech firms in general, and tech particular, excess profits or (2) profitability, if any, due power. We use two alternative measures economic profitability addition accounting rate return (ARR): internal (IRR), whi...