Related papers: Influencing Competition Through Shelf Design
Building on the generalized hedonic-linear model of Pellegrino (2025), this paper studies optimal product differentiation when a representative consumer has preferences over product characteristics. Under multiproduct monopoly, the…
In many applications, ads are displayed together with the prices, so as to provide a direct comparison among similar products or services. The price-displaying feature not only influences the consumers' decisions, but also affects the…
We study a contest in which $N$ players sequentially draw from a distribution as many times as they want at a fixed cost per draw, with no recall, and the highest accepted value wins a prize. In the unique symmetric equilibrium, the…
There has been significant research in the last five years on ensuring the providers of items in a recommender system are treated fairly, particularly in terms of the exposure the system provides to their work through its results. However,…
We explore a model of duopolistic competition in which consumers learn about the fit of each competitor's product. In equilibrium, consumers comparison shop: they learn only about the relative values of the products. When information is…
We consider a model of oligopolistic competition in a market with search frictions, in which competing firms with products of unknown quality advertise how much information a consumer's visit will glean. In the unique symmetric equilibrium…
Facility location games have been a topic of major interest in economics, operations research and computer science, starting from the seminal work by Hotelling. Spatial facility location models have successfully predicted the outcome of…
Product diversity is one of the prominent factors for customers' satisfaction, while from the firms' perspective, the additional engineering costs required for product diversity should not exceed the acquired profits from the increase in…
I study the role of industries' position in supply chains in shaping the transmission of final demand shocks. First, I use a novel shift-share design leveraging destination-specific final demand shocks and a new measure of destination…
Aesthetics are critically important to market acceptance. In the automotive industry, an improved aesthetic design can boost sales by 30% or more. Firms invest heavily in designing and testing aesthetics. A single automotive "theme clinic"…
This paper investigates the impacts of competition in autonomous mobility-on-demand systems. By adopting a network-flow based formulation, we first determine the optimal strategies of profit-maximizing platform operators in monopoly and…
In this paper, we examine the effectiveness of various recommendation strategies in the mobile channel and their impact on consumers' utility and demand levels for individual products. We find significant differences in effectiveness among…
We show that, with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents' substitution effects, not their income effects. Our Equilibrium Existence Duality allows us to transport results on the…
We study economies where consumers interact independently with many monopolists. When consumer valuations over goods are correlated, correlation can distort the induced distribution of consumer surplus (information rents). We identify which…
We study a model of retail agglomeration where consumers are more likely to visit zones with a higher concentration of shops. This agglomerative effect makes zones with many retailers more attractive. The spatial distribution of retailers…
We present empirical evidence on the relationship between demand shocks and price changes, conditional on returns to scale. We find that in industries with decreasing returns to scale, demand increases (which raise costs) correspond to…
In many markets buyers are poorly informed about which firms sell the product (product availability) and prices, and therefore have to spend time to obtain this information. In contrast, sellers typically have a better idea about which…
In two-sided marketplaces, items compete for user attention, which translates to revenue for suppliers. Item exposure, indicated by the amount of attention items receive in a ranking, can be influenced by factors like position bias. Recent…
Matching and recommending products is beneficial for both customers and companies. With the rapid increase in home goods e-commerce, there is an increasing demand for quantitative methods for providing such recommendations for millions of…
This paper investigates the value of recommendations for disseminating economic information, with a focus on frictions resulting from preference heterogeneity. We consider Bayesian expected-payoff maximizers who receive non-strategic…