Related papers: Paid Prioritization with Content Competition
We design profit-maximizing mechanisms to sell an excludable and non-rival good with positive and/or negative network effects. Buyers have heterogeneous private values that depend on how many others also consume the good. In optimum, an…
Internet services are traditionally priced at flat rates; however, many Internet service providers (ISPs) have recently shifted towards two-part tariffs where a data cap is imposed to restrain data demand from heavy users. Although the…
Advanced space technology systems often face high fixed costs, can serve limited non-government demand, and are significantly driven by non-market motivations. While increased entrepreneurial activity and national ambitions in space have…
Conditional preference networks (CP-nets) are a graphical representation of a person's (conditional) preferences over a set of discrete variables. In this paper, we introduce a novel method of quantifying preference for any given outcome…
We study shared sequencing for different chains from an economic angle. We introduce a minimal non-trivial model that captures cross-domain arbitrageurs' behavior and compare the performance of shared sequencing to that of separate…
Recent scholarly work has extensively examined the phenomenon of algorithmic collusion driven by AI-enabled pricing algorithms. However, online platforms commonly deploy recommender systems that influence how consumers discover and purchase…
I characterize the consumer-optimal market segmentation in competitive markets where multiple firms selling differentiated products to consumers with unit demand. This segmentation is public---in that each firm observes the same market…
It is well known that load balancing and low delivery communication cost are two critical issues in mapping requests to servers in Content Delivery Networks (CDNs). However, the trade-off between these two performance metrics has not been…
Congestion game is a widely used model for modern networked applications. A central issue in such applications is that the selfish behavior of the participants may result in resource overloading and negative externalities for the system…
The increasing competition in digital advertising induced a proliferation of media agencies playing the role of intermediaries between advertisers and platforms selling ad slots. When a group of competing advertisers is managed by a common…
We study selfish routing games where users can choose between regular and priority service for each network edge on their chosen path. Priority users pay an additional fee, but in turn they may travel the edge prior to non-priority users,…
In this paper, we consider the stochastic network with dynamic traffic. The spatial distribution of access points (APs) and users are first modeled as mutually independent Poisson point processes (PPPs). Different from most previous…
We analyze the structure of the market for foundation models, i.e., large AI models such as those that power ChatGPT and that are adaptable to downstream uses, and we examine the implications for competition policy and regulation. We…
Recent research in industrial organisation has investigated the essential place that middlemen have in the networks that make up our global economy. In this paper we attempt to understand how such middlemen compete with each other through a…
We study price regulation for a monopolist operating in networked markets with demand spillovers. Achieving efficiency requires price reductions proportional to consumers' Katz-Bonacich centralities, which generally cannot be implemented by…
We study the optimal pricing strategies of a monopolist selling a divisible good (service) to consumers that are embedded in a social network. A key feature of our model is that consumers experience a (positive) local network effect. In…
We introduce pricing formulas for competition and collusion models of two-sided markets with an outside option. For the competition model, we find conditions under which prices and consumer surplus may increase or decrease if the outside…
Search Engine marketing teams in the e-commerce industry manage global search engine traffic to their websites with the aim to optimize long-term profitability by delivering the best possible customer experience on Search Engine Results…
Mobile data demand is increasing tremendously in wireless social networks, and thus an efficient pricing scheme for social-enabled services is urgently needed. Though static pricing is dominant in the actual data market, price intuitively…
We study revenue-optimal pricing and driver compensation in ridesharing platforms when drivers have heterogeneous preferences over locations. If a platform ignores drivers' location preferences, it may make inefficient trip dispatches;…