Related papers: Shrouded Sin Taxes
We study the production, entry, and technological decisions of firms in the presence of bribery. We find that bribery can be justified even in the absence of bureaucratic inefficiencies. We document substantial technology-specific…
Retargeting ads are increasingly prevalent on the Internet as their effectiveness has been shown to outperform conventional targeted ads. Retargeting ads are not only based on users' interests, but also on their intents, i.e. commercial…
Sponsored search is an indispensable business model and a major revenue contributor of almost all the search engines. From the advertisers' side, participating in ranking the search results by paying for the sponsored search advertisement…
Online advertising has been the major monetization approach for Internet companies. Advertisers invest budgets to bid for real-time impressions to gain direct and indirect returns. Existing works have been concentrating on optimizing direct…
Internet finance is a new financial model that applies Internet technology to payment, capital borrowing and lending and transaction processing. In order to study the internal risks, this paper uses the Internet financial risk elements as…
We consider a financial market in which traders potentially face restrictions in trading some of the available securities. Traders are heterogeneous with respect to their beliefs and risk profiles, and the market is assumed thin: traders…
This study analyses the tax-induced profit shifting behaviour of firms and the impact of governments' anti-shifting rules. We derive a model of a firm that combines internal sales and internal debt in a full profit shifting strategy, and…
Algorithmic price collusion facilitated by artificial intelligence (AI) algorithms raises significant concerns. We examine how AI agents using Q-learning engage in tacit collusion in two-sided markets. Our experiments reveal that AI-driven…
This paper studies how household heterogeneity affects the level and cyclical behavior of the optimal carbon tax in a real economy. We demonstrate that an equity-efficiency trade-off arises due to income inequality and heterogeneity in the…
Smoothed online combinatorial optimization considers a learner who repeatedly chooses a combinatorial decision to minimize an unknown changing cost function with a penalty on switching decisions in consecutive rounds. We study smoothed…
In online advertising, a set of potential advertisements can be ranked by a certain auction system where usually the top-1 advertisement would be selected and displayed at an advertising space. In this paper, we show a selection bias issue…
In this research, we investigate the impact of delegating decision making to information technology (IT) on an important human decision bias - the sunk cost effect. To address our research question, we use a unique and very rich dataset…
Marketing optimization, commonly formulated as an online budget allocation problem, has emerged as a pivotal factor in driving user growth. Most existing research addresses this problem by following the principle of 'first predict then…
In this paper, we revisit the problem of smoothed online learning, in which the online learner suffers both a hitting cost and a switching cost, and target two performance metrics: competitive ratio and dynamic regret with switching cost.…
This study examines the lack of redistributive effectiveness of consumption-based tax systems with respect to social fairness. Through numerical simulations, we explore the wealth exchanges among economic agents subject to flat consumption…
We ask if it is possible to positively influence social behavior with no risk of unintentionally incentivizing pathological behavior. In network routing problems, if network traffic is composed of many individual agents, it is known that…
This paper examines the impact of introducing a Rank-Dependent Utility (RDU) agent into a von Neumann-Morgenstern (vNM) pure-exchange economy with no aggregate uncertainty. In the absence of the RDU agent, the classical theory predicts that…
This paper proposes a Bayesian factor-augmented bundle choice model to estimate joint consumption as well as the substitutability and complementarity of multiple goods in the presence of endogenous regressors. The model extends the two…
Millions of drivers worldwide have enjoyed financial benefits and work schedule flexibility through a ride-sharing economy, but meanwhile they have suffered from the lack of a sense of identity and career achievement. Equipped with social…
Recent years have shown a rapid adoption of residential solar PV with increased self-consumption and self-sufficiency levels in Europe. A major driver for their economic viability is the electricity tax exemption for the consumption of…