Microeconomics 3

1st class: 8 November 2019, 11:00am-1:00pm

  1. Market intermediation with particular reference to network goods

Introduction to the intermediation problem: Information and reputation questions

Reference:

(*) Belleflamme P. and M. Peitz, (2015) Industrial Organization, 2d ed, Cambridge University Press,

Ch. 23

The supply side question: On-line customer persuasion and privacy

Reference:

A De Corniere, R De Nijs (2016) Online advertising and privacy, The RAND Journal of Economics,

The demand side question: Consumer’s attention cost  

References:

Kominers S. D, X. Mu, A. Peysakhovich (2016) Paying (for) Attention: The Impact of Information Processing Costs on Bayesian Inference, WP

Prat, A, T. Valletti (2019) Attention Oligopoly, WP

 

2d class: 14 November 2019, 11:00am- 1:00 pm

  1. Behavioral IO: Foundation

Bounded rationality in IO

References:

(*) Potters, J., S, Suetens (2013) Oligopoly experiments in the current millennium, Journal of Economic Surveys

Eliaz, K, R. Spiegler (2015) Beyond “Ellison’s Matrix”: New Directions in Behavioral Industrial Organization, Review of Industrial Organization

 

3d class: 15 November 2019, 11:00am-1:00pm

  1. Behavioral competition policy

Online ad price, merger and entry when consumers single-home and when consumers multi-home. Online price discrimination.

References:

(*) Anderson, S P, Ø Foros, and H J Kind (2018), “Competition for advertisers and for viewers in media markets”, The Economic Journal 128: 34-54.

Anderson,SP, A Baik , N. Larson (2019) “Price Discrimination in the Information Age: Prices, Poaching, and Privacy with Personalized Targeted Discounts”, CEPR Disc.Pap.

Athey, S, E Calvano, and J Gans (2018), “The impact of consumer multi-homing on advertising markets and media competition”, Management Science 64(4): 1574-1590.

Anderson, S P, Ø Foros, and H J Kind (2019), “The importance of consumer multi-homing (joint purchases) for market performance: mergers and entry in media markets”, Journal of Economics & Management Strategy, 28 (1):125-137

 “Quasi” rational consumers

References:

(*) Luini, L., P.L. Sabbatini (2012) Demand cross elasticity without substitutability, Journal of

Socio-Economics

Meier S., C. Sprenger (2010) Present-biased preferences and credit card borrowing, American Economic Journal: Applied Economics

Filippas,A.,  JJ Horton,J, Golden  (2019) “Reputation Inflation”  NBER, WP,

(*) Main reference