Related papers: Information Acquisition and Diffusion in Markets
In markets with search frictions, consumers can acquire information about goods either through costly search or from friends via word-of-mouth (WOM) communication. How do sellers' market power react to a very large increase in the number of…
We modify the standard model of price competition with horizontally differentiated products, imperfect information, and search frictions by allowing consumers to flexibly acquire information about a product's match value during their…
We study the ramifications of increased commitment power for information provision in an oligopolistic market with search frictions. Although prices are posted and, therefore, guide search, if firms cannot commit to information provision…
In the following work, we compare the spread of information by word-of-mouth (WOM) to the spread of information through search engines. We assume that the initial acknowledgement of new information derives from social interactions but that…
When a new product or technology is introduced, potential consumers can learn its quality by trying the product, at a risk, or by letting others try it and free-riding on the information that they generate. We propose a dynamic game to…
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…
This paper investigates the interplay between information diffusion in social networks and its impact on financial markets with an Agent-Based Model (ABM). Agents receive and exchange information about an observable stochastic component of…
One major feature of social networks (e.g., massive online social networks) is the dissemination of information, such as news, rumors and opinions. Information can be propagated via natural connections in written, oral or electronic forms.…
Many studies have explored spreading and diffusion through complex networks. The following study examines a specific case of spreading of opinions in modern society through two spreading schemes, defined as being either through…
Motivated by agentic markets -- two-sided markets in which consumers and businesses are assisted by AI tools that facilitate consumers' search -- we study the impact of improved search technology on learning and welfare in markets. We put…
Social networks play a fundamental role in the diffusion of information. However, there are two different ways of how information reaches a person in a network. Information reaches us through connections in our social networks, as well as…
This paper examines competitive information disclosure in search markets with a mix of savvy consumers, who search costlessly, and inexperienced consumers, who face positive search costs. Savvy consumers incentivize truthful disclosure;…
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…
A monopolist faces a partially uninformed population of consumers, interconnected through a directed social network. In the network, the monopolist offers rewards to informed consumers (influencers) conditional on informing uninformed…
How can we approach the truth in a society? It may depend on various factors. In this paper, using a well-established truth seeking model, we show that the persistent free information flow will bring us to the truth. Here the free…
In financial markets valuable information is rarely circulated homogeneously, because of time required for information to spread. However, advances in communication technology means that the 'lifetime' of important information is typically…
How does competition in markets for information affect the creation and division of surplus? We study this question in a search environment in which an agent searches sequentially for a high-quality good and learns about the quality of…
People use search engines to find answers to questions related to their health, finances, or other socially relevant issues. However, most users are unaware that search results are considerably influenced by search engine marketing (SEM).…
Information spreading in online social communities has attracted tremendous attention due to its utmost practical values in applications. Despite that several individual-level diffusion data have been investigated, we still lack the…
After the Internet and the World Wide Web have become popular and widely-available, the electronically stored online interactions of individuals have fast emerged as a challenge for researchers and, perhaps even faster, as a source of…