Social Learning and the Gains of Experimentation: The Case of Airbnb

Reviews link the purchase decision of different consumers and create an externality. We analyze the consequences of this in a structural model of booking decisions on Airbnb.

Amazon Entry on Amazon Marketplace

We want to find out whether the concern of seller and consumer harm as a result of Amazon entry finds emprical support beyond anecdotal evidence provided by the media. To this end, we measure the predictors and effects of Amazon first-party retail entry on consumer and third-party merchant outcomes in the Home & Kitchen department of Germany’s Marketplace between 2016 and 2021. While the empirical setting presented challenges for estimating causal effects, our results are broadly inconsistent with systematic adverse effects of Amazon entry on Amazon Marketplace.

Killer Acquisitions and Beyond: Policy Effects on Innovation Strategies

This paper provides a theory of strategic innovation project choice by incumbents and start-ups which serves as a foundation for the analysis of acquisition policy. We show that prohibiting acquisitions has a weakly negative innovation effect. We provide conditions determining the size of the effect and, in particular, whether it is zero or positive. We further analyze the effects of less restrictive policies, including merger remedies and the tax treatment of acquisitions and initial public offerings. Such interventions tend to prevent acquisitions only if the entrant has sufficiently high stand-alone profits.

Information is Power: Data Use for Platform-Owner Entry

Data generated on the marketplace gives platforms abundant information on sellers and consumers. I theoretically analyze the problem that arises if a platform itself is active on the marketplace and thus data may gives rise to a competitive advantage vis-à-vis third-party sellers.