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We investigate the relationship between product offerings, information dissemination, and consumer decision-making in a monopolistic screening environment in which consumers lack information about their valuation of quality-differentiated…
In the current digital age of the Internet, with ever-growing networks and data-driven business models, digital platforms and especially marketplaces are becoming increasingly important. These platforms focus primarily on digital businesses…
The rise of foundation models has driven the emergence of AI supply chains, where upstream foundation model providers offer fine-tuning and inference services to downstream firms developing domain-specific applications. Downstream firms pay…
Deepfake Technology Unveiled: The Commoditization of AI and Its Impact on Digital Trust. With the increasing accessibility of generative AI, tools for voice cloning, face-swapping, and synthetic media creation have advanced significantly,…
Recent advances in generative AI systems have dramatically reduced the cost of digital production, fueling narratives that widespread participation in software creation will yield a proliferation of viable companies. This paper challenges…
This paper explores the impact of manufacturers' overconfidence on their collaborative innovation with platforms in the Internet of Things (IoT) environment by constructing a game model. It is found that in both usage-based and…
Technological improvement is the most important cause of long-term economic growth. We study the effects of technology improvement in the setting of a production network, in which each producer buys input goods and converts them to other…
Middleware, third-party software intermediaries between users and platforms, has been broached as a means to decentralize the power of social media platforms and enhance user agency. Middleware may enable a more user-centric and democratic…
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…
It is widely assumed that increases in economic productivity necessarily lead to economic growth. In this paper, it is shown that this is not always the case. An idealized model of an economy is presented in which a new technology allows…
We develop a model of social media in which users produce different types of content and choose whom to follow. Even when abstracting from algorithmic bias, linking costs shape networks and polarization. In the welfare-maximizing…
This paper develops a theoretical model to study the economic incentives for a social media platform to moderate user-generated content. We show that a self-interested platform can use content moderation as an effective marketing tool to…
This paper presents a unified computational framework to examine how generative AI (GenAI) reshapes welfare, inequality, and diversity in content platform economies. By integrating welfare economics with agent-based simulations, we model…
Generative artificial intelligence (Gen-AI) is reshaping content creation on digital platforms by reducing production costs and enabling scalable output of varying quality. In response, platforms have begun adopting disclosure policies that…
Major online platforms today can be thought of as two-sided markets with producers and customers of goods and services. There have been concerns that over-emphasis on customer satisfaction by the platforms may affect the well-being of the…
Generative artificial intelligence (AI) exhibits the capability to generate creative content akin to human output with greater efficiency and reduced costs. This groundbreaking capability, however, has ignited a debate regarding its…
Central to privacy concerns is that firms may use consumer data to price discriminate. A common policy response is that consumers should be given control over which firms access their data and how. Since firms learn about a consumer's…
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…
The advent of Large Language Models (LLMs) represents a fundamental shock to the economics of information production. By asymmetrically collapsing the marginal cost of generating low-quality, synthetic content while leaving high-quality…
When developers of artificial intelligence (AI) products need to decide between profit and safety for the users, they likely choose profit. Untrustworthy AI technology must come packaged with tangible negative consequences. Here, we…