Related papers: Information Intermediaries in Monopolistic Screeni…
In their study of price discrimination for a monopolist selling heterogeneous products to consumers having private information about their own multidimensional types, Rochet and Chon\'e (1998) discovered a new form of screening in which…
We consider sequential search by an agent who cannot observe the quality of goods but can acquire information by buying signals from a profit-maximizing principal with limited commitment power. The principal can charge higher prices for…
We study how a monopolist's use of consumer data for price discrimination affects welfare. To answer this question, we develop a model of market segmentation subject to residual uncertainty. We fully characterize when data usage…
Optimizing outcomes for multiple stakeholders in recommender systems has historically focused on algorithmic interventions, such as developing multi-objective models or re-ranking results from existing algorithms. However, structural…
Public and private institutions must often allocate scare resources under uncertainty. Banks, for example, extend credit to loan applicants based in part on their estimated likelihood of repaying a loan. But when the quality of information…
Network neutrality and the role of regulation on the Internet have been heavily debated in recent times. Amongst the various definitions of network neutrality, we focus on the one which prohibits paid prioritization of content and we…
We study the optimal pricing strategies of a monopolist selling a divisible good (service) to consumers that are embedded in a social network. A key feature of our model is that consumers experience a (positive) local network effect. In…
Recommender systems often struggle to strike a balance between matching users' tastes and providing unexpected recommendations. When recommendations are too narrow and fail to cover the full range of users' preferences, the system is…
Online platforms have a wealth of data, run countless experiments and use industrial-scale algorithms to optimize user experience. Despite this, many users seem to regret the time they spend on these platforms. One possible explanation is…
We consider the problem of designing auctions which maximize consumer surplus (i.e., the social welfare minus the payments charged to the buyers). In the consumer surplus maximization problem, a seller with a set of goods faces a set of…
We study decentralized markets with the presence of middlemen, modeled by a non-cooperative bargaining game in trading networks. Our goal is to investigate how the network structure of the market and the role of middlemen influence the…
We conduct a field experiment on a movie-recommendation platform to investigate whether and how online recommendations influence consumption choices. Using a within-subjects design, our experiment measures the causal effect of…
This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but selects from multiple categories in parallel. The consumer's utility is additive in…
I consider an environment in which a decision maker faces uncertainty and privately holds information in the form of a signal about the true state of the world. The decision maker purchases additional information from a data broker before…
The high number of products available makes it difficult for a user to find the most suitable products according to their needs. This problem is especially exacerbated when the user is trying to optimize multiple attributes during product…
We study a model of user decision-making in the context of recommender systems via numerical simulation. Our model provides an explanation for the findings of Nguyen, et. al (2014), where, in environments where recommender systems are…
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…
Algorithms that favor popular items are used to help us select among many choices, from engaging articles on a social media news feed to songs and books that others have purchased, and from top-raked search engine results to highly-cited…
Recommender systems often rely on models which are trained to maximize accuracy in predicting user preferences. When the systems are deployed, these models determine the availability of content and information to different users. The gap…
The state of economic theory and accumulated facts from the different branches of the economic science require to analyze the concept of the description of economy systems. The economic reality generates the problems the solution of that is…