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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…

General Economics · Economics 2020-11-26 Wenhao Li

This paper studies ranking policies in a stylized trial-offer marketplace model, in which a single firm offers products and has consumers with heterogeneous preferences. Consumer trials are influenced by past purchases and the ranking of…

Social and Information Networks · Computer Science 2021-02-11 Franco Berbeglia , Gerardo Berbeglia , Pascal Van Hentenryck

We study how market segmentation affects consumers when a monopolist can adjust both prices and product qualities across segments, engaging in second- and third-degree price discrimination simultaneously. We characterize the…

Theoretical Economics · Economics 2026-03-04 Dirk Bergemann , Tibor Heumann , Michael C. Wang

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…

Computer Science and Game Theory · Computer Science 2026-03-30 Brendan Lucier , Nicole Immorlica , Markus Mobius , Aleksandrs Slivkins , Daniel G. Goldstein , Jake M. Hofman , Sonia Jaffe , David M. Rothschild

We solve for the equilibrium dynamics of information sharing in a large population. Each agent is endowed with signals regarding the likely outcome of a random variable of common concern. Individuals choose the effort with which they search…

Probability · Mathematics 2008-11-20 Darrell Duffie , Semyon Malamud , Gustavo Manso

Data regulations increasingly enable consumers to switch among market segments, making segmentation an endogenous outcome of strategic interaction. We study a model in which consumers choose segments before a monopolist sets…

Theoretical Economics · Economics 2026-05-14 Zhonghong Kuang , Sanxi Li , Yi Liu , Yang Yu

Social Search research deals with studying methodologies exploiting social information to better satisfy user information needs in Online Social Media while simplifying the search effort and consequently reducing the time spent and the…

Social and Information Networks · Computer Science 2023-09-14 Maddalena Amendola , Andrea Passarella , Raffaele Perego

We study the design of a decentralized two-sided matching market in which agents' search is guided by the platform. There are finitely many agent types, each with (potentially random) preferences drawn from known type-specific…

Computer Science and Game Theory · Computer Science 2021-08-19 Nicole Immorlica , Brendan Lucier , Vahideh Manshadi , Alexander Wei

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…

Theoretical Economics · Economics 2021-04-28 Vasudha Jain , Mark Whitmeyer

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…

Theoretical Economics · Economics 2026-05-26 Teddy Mekonnen , Bobak Pakzad-Hurson

We present a model of competition between web search algorithms, and study the impact of such competition on user welfare. In our model, search providers compete for customers by strategically selecting which search results to display in…

Computer Science and Game Theory · Computer Science 2013-10-16 David Kempe , Brendan Lucier

We study the problem of designing a two-sided market (double auction) to maximize the gains from trade (social welfare) under the constraints of (dominant-strategy) incentive compatibility and budget-balance. Our goal is to do so for an…

Computer Science and Game Theory · Computer Science 2024-06-21 Moshe Babaioff , Amitai Frey , Noam Nisan

Online platforms collect rich information about participants and then share some of this information back with them to improve market outcomes. In this paper we study the following information disclosure problem in two-sided markets: If a…

Theoretical Economics · Economics 2023-09-01 Bar Light , Ramesh Johari , Gabriel Weintraub

We consider a monopolistic seller in a market that may be segmented. The surplus of each consumer in a segment depends on the price that the seller optimally charges, which depends on the set of consumers in the segment. We study which…

Theoretical Economics · Economics 2022-10-25 Nima Haghpanah , Ron Siegel

We study markets where firms compete for consumer attention by subsidizing costly product inspection. These subsidies do not change product quality, but they alter the order in which consumers search by lowering inspection costs. We…

Theoretical Economics · Economics 2026-05-29 Salvador Candelas , Nicole Immorlica , Brendan Lucier

We investigate market forces that would lead to the emergence of new classes of players in the sponsored search market. We report a 3-fold diversification triggered by two inherent features of the sponsored search market, namely, capacity…

Computer Science and Game Theory · Computer Science 2007-11-05 Sudhir Kumar Singh , Vwani P. Roychowdhury , Himawan Gunadhi , Behnam A. Rezaei

A monopoly seller is privately and imperfectly informed about the buyer's value of the product. The seller uses information to price discriminate the buyer. A designer offers a mechanism that provides the seller with additional information…

Theoretical Economics · Economics 2023-03-03 Shota Ichihashi , Alex Smolin

We develop a framework for the analysis of large-scale Ad-auctions where adverts are assigned over a continuum of search types. For this pay-per-click market, we provide an efficient mechanism that maximizes social welfare. In particular,…

Computer Science and Game Theory · Computer Science 2016-06-03 Frank Kelly , Peter Key , Neil Walton

We study how to optimally segment monopolistic markets with a redistributive objective. We characterize optimal redistributive segmentations and show that they (i) induce the seller to price progressively, i.e., charge richer consumers…

Theoretical Economics · Economics 2026-05-14 Victor Augias , Alexis Ghersengorin , Daniel M. A. Barreto

We consider an environment where sellers compete over buyers. All sellers are a-priori identical and strategically signal buyers about the product they sell. In a setting motivated by on-line advertising in display ad exchanges, where firms…

Computer Science and Game Theory · Computer Science 2012-03-30 Gleb Polevoy , Rann Smorodinsky , Moshe Tennenholtz
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