The business model of commercial-financing relies on advertisers to pay for content. Advertisers will not pay if consumers unbundle the advertisements from the content (advertising bypass). TiVo, remote controls, and pop-up ad blockers are examples of adavoidance technologies. Purchasing such devices causes content providers to increase advertising levels (as has happened recently) because the ...

Since 2008, multiple smartphone platforms have launched versions of “app stores”, marketplaces where consumers can purchase and download software applications for their smartphone. This paper provides evidence for both demand and supply of “apps” using data on the size and composition of smartphone user bases and of the apps available for competing platforms. Results from the estimation of a st...

This paper presents results from a field study on voluntary contributions for an information public good provided via the Internet (an electronic newsletter for authors). Whereas the standard private provision model predicts that individuals contribute less if other individuals contribute more, we find that readers are more likely to pay the more they expect others to give. This result is consi...

This paper develops a simple model of software piracy to analyze the short-run effects of piracy on software usage and the long-run effects on development incentives. We consider two types of costs associated with piracy: the reproduction cost that is constant across users and the degradation cost that is proportional to consumers’ valuation of the original product. We show that the effects of ...

We report an experiment designed to study whether inefficient firms are systematically driven from overcrowded markets. Our data set includes a series of 3,800 wars of attrition of a type modeled by Fudenberg and Tirole in 1986. We find that exit tends to be efficient and exit times conform surprisingly well to point predictions of the model. Moreover, subjects respond similarly to implementati...

This paper uses Granger non–causality tests to analyze if channel competition exists between the companion websites of 93 German newspapers observed between I/1998 and II/2005. It provides econometric evidence for significant negative effects of companion website traffic on the print circulation of national newspapers and for significantly positive effects on local newspapers, at least for the ...

the main objective of this paper is to evaluate the effect of r&d on profitability of high -tech industries with new evidence from the iranian industries carrying four- digit codes. the structure- conduct- performance (scp) paradigm, which is relatively well known in industrial economics and in organization management, provides the theoretical construct that guides our empirical model formu...

Recent developments in social media have morphed the age-old practice of paying influential individuals for product endorsements into a multibillion dollar industry, extending well beyond celebrity sponsorships. We develop parsimonious model which influencers trade off increased revenue they obtain from paid with negative impact that these on their followers’ engagement and, therefore, price re...