Becher, Michael, Stegmueller, Daniel and Käppner, Konstantin (2018) Data and Competition: A Simple Framework. TSE Working Paper, n. 80, Toulouse

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Abstract

Does enhanced access to data foster or hinder competition among firms? Using a competition-in-utility framework that encompasses many situations where firms use data, we model data as a revenue-shifter and identify two opposite effects: a mark-up effect according to which data induces firms to compete harder, and a surplus-extraction effect. We provide conditions for data to be pro- or anti-competitive, requiring neither knowledge of demand nor computation of equilibrium. We apply our results to situations where data is used to recommend products, monitor insuree behavior, price-discriminate, or target advertising. We also revisit the issue of data and market structure.

Item Type: Monograph (Working Paper)
Language: English
Date: April 2018
Place of Publication: Toulouse
JEL Classification: L1 - Market Structure, Firm Strategy, and Market Performance
L4 - Antitrust Issues and Policies
L5 - Regulation and Industrial Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 31 Mar 2019 22:02
Last Modified: 18 Jul 2023 08:44
OAI Identifier: oai:tse-fr.eu:32535
URI: https://publications.ut-capitole.fr/id/eprint/32296

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