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Recent scholarly work has extensively examined the phenomenon of algorithmic collusion driven by AI-enabled pricing algorithms. However, online platforms commonly deploy recommender systems that influence how consumers discover and purchase…
As e-commerce rapidly integrates artificial intelligence for content creation and product recommendations, these technologies offer significant benefits in personalization and efficiency. AI-driven systems automate product descriptions,…
We study a model of innovation with a large number of firms that create new technologies by combining several discrete ideas. These ideas are created via private investment and spread between firms. Firms face a choice between secrecy,…
The Artificial Intelligence paradigm (hereinafter referred to as "AI") builds on the analysis of data able, among other things, to snap pictures of the individuals' behaviors and preferences. Such data represent the most valuable currency…
Algorithmic recommender systems such as Spotify and Netflix affect not only consumer behavior but also producer incentives. Producers seek to create content that will be shown by the recommendation algorithm, which can impact both the…
The knowledge gap hypothesis suggests that the diffusion of information tends to increase rather than reduce social inequalities. Subsequent research on the digital divide has extended this perspective by focusing on unequal access to and…
In an economy with asymmetric information, the smart contract in the blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell…
Using novel survey data from Swiss firms, this paper empirically examines the relationship between the use of digital technologies and the prevalence of performance incentives. We argue that digital technologies tend to reduce the cost of…
The rise of autonomous pricing systems has sparked growing concern over algorithmic collusion in markets from retail to housing. This paper examines controlled information quality as an ex ante policy lever: by reducing the fidelity of data…
Generative Artificial Intelligence (AI) technologies and large models are producing realistic outputs across various domains, such as images, text, speech, and music. Creating these advanced generative models requires significant resources,…
Generative Artificial Intelligence (AI) tools are increasingly deployed across social media platforms, yet their implications for user behavior and experience remain understudied, particularly regarding two critical dimensions: (1) how AI…
We study the competitive and welfare effects of copyright in creative industries in the face of cost-reducing technologies such as generative artificial intelligence. Creative products often feature unstructured attributes (e.g., images and…
The rapid advancement of generative artificial intelligence (AI) has transformed the information environment, creating both opportunities and challenges. This paper explores how generative AI influences economic rent-seeking behavior and…
We study the effects of data sharing between firms on prices, profits, and consumer welfare. Although indiscriminate sharing of consumer data decreases firm profits due to the subsequent increase in competition, selective sharing can be…
The digitalization of manufacturing has created opportunities for consumers to customize products that fit their individualized needs which in turn would drive demand for manufacturing services. However, this pull-based manufacturing system…
This paper studies the impact of artificial intelligence on innovation, exploiting the randomized introduction of a new materials discovery technology to 1,018 scientists in the R&D lab of a large U.S. firm. AI-assisted researchers discover…
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…
This study investigates the implications of algorithmic pricing in digital marketplaces, focusing on Airbnb's pricing dynamics. With the advent of Airbnb's new pricing tool, this research explores how digital tools influence hosts' pricing…
Recent evidence, both in the lab and in the wild, suggests that the use of generative artificial intelligence reduces the diversity of content produced. The use of the same or similar AI models appears to lead to more homogeneous behavior.…
This paper presents a model of network formation and public goods provision in local communities. Here, networks can sustain public good provision by spreading information about people's behaviour. I find a critical threshold in network…