How does online advertising affect consumer behaviour, product pricing and competition? To analyse this, I develop a theory of digital markets where an intermediary provides a platform for firms to advertise their product and where consumers need to engage in costly search if they want to learn about the product characteristics. First, I show that when prices are observable...
This paper provides novel empirical results on the welfare impact of sanctions when countries coordinate their sanctions packages. To do so, weconduct simulations with the Caliendo and Parro (2015) CGE model of the world economy that provides changes in welfare under different hypothetical setups of sanctions coalitions. Focusing on the 2012 wave of sanctions against Iran and the 2014 sanctions...
Firms with superior productivity, labeled superstar firms, are argued to be the link between rising concentration and the fall of the aggregate labor share in the US. This analysis confirms that similar evidence is found within the European context: the market share and firm size increase, whereas the labor share decreases with productivity. One of the much discussed mechanisms behind this development ...
Whether pro-social preferences identified in economic laboratory experiments survive in natural market contexts is an important and contested issue. We investigate how fairness in a laboratory experiment framed explicitly as a market exchange relates to preferences for fair trade products elicited before and at the end of the market experiment. We find that the willingness to buy at a higher price...
DIW-Studie untersucht am Beispiel Mallorca den Einfluss der Corona-Pandemie sowie Maßnahmen zu ihrer Eindämmung auf Passagierflugverkehr – Reiseverbote und Quarantänepflichten beeinträchtigten Flugverkehr nach Mallorca erheblich – Corona-Regeln in Urlaubsregion wie Maskenpflicht oder Ausgangssperren haben keinen Effekt – Veröffentlichung von Inzidenzen im ...
Venture capital (VC) is often seen as an instrumental tool that allows many start-ups to pursue innovation with the potential to shake-up current markets and/or to replace incumbents. Using a highly granular, project-level dataset from preclinical diabetes R&D, this paper shows that VCs actively steer the direction of R&D and streamline activities of research focused firms (pipeline firms)...
This year’s online conference is focusing on the Digital Markets Act (DMA), the EU legislative proposal to regulate digital markets in order to prevent abuses of market power. This regulatory tool contains behavioral obligations for large online platforms (‘gatekeepers’) aimed at reducing entry barriers and ensuring fairness in the relationship between digital platforms and their different user...
Konzentration in deutschen Produktmärkten bleibt insgesamt langfristig konstant, steigt aber im Dienstleistungssektor – In EU- und weltweiten Dienstleistungsmärkten nimmt Konzentration stärker zu als in nationalen Produktmärkten – Treiber sind meist Eintrittsbarrieren, aber auch höhere Effizienz – Strengere Fusionskontrolle gefordert Die viel beschworene ...