Media

This paper investigates the short-run effects of platform market concentration on advertising prices, leveraging the temporary outage of TikTok in the U.S. in January 2025 as a quasi-exogenous shock to advertising demand and supply on competing social media platforms. While increased advertiser demand on other platforms would raise prices, more impression opportunities from users substituting to those platforms would lower prices, creating opposing forces on ad prices.

One of the most crucial aspects and significant levers that gaming companies possess in designing digital games is setting the level of difficulty, which essentially regulates the user’s ability to progress within the game. This aspect is particularly significant in free-to-play (F2P) games, where the paid version often aims to enhance the player’s experience and to facilitate faster progression.

With unprecedented access to consumer information, firms are increasingly interested in designing highly effective data-driven targeting policies based on detailed consumer data. The current standard for implementing such policies involves the “test-then-learn” approach, where randomized experiments are used to estimate the differential impact of marketing interventions on various customers. However, this method fails to incorporate the firm’s ultimate business objectives, leading to inefficient experimentation and suboptimal targeting strategies.

In a data economy, transactions of goods and services generate data, which is stored, traded and depreciates. How are the economics of this economy different from traditional production economies? How do these differences matter for measurement of  GDP, firm values, depreciation rates, welfare and externalities? We incorporate active experimentation and data as an

To investigate general patterns in news information in the United States, we combine a protocol for identifying major political news stories, 11 monthly surveys with 15,000 participants, and a model of news discernment. When confronted with a true and a fake news story, 47 percent of subjects confidently choose the true story, 3 percent confidently choose the fake story, and the remaining half are uncertain. Socioeconomic differences are associated with large variations in the probability of selecting the true news story.

Big data technologies change the way in which data and human labor combine to create knowledge. Is this a modest technological advance or a data revolution? Using hiring and wage data, we show how to estimate firms' data stocks and the shape of their knowledge production functions. Knowing how much production functions have changed informs us about the likely long-run changes in output, in factor shares, and in the distribution of income, due to the new, big data technologies.

‘Moral hazard’ links geoengineering to mitigation via the fear that either solar geoengineering (solar radiation management, SRM) or carbon dioxide removal (CDR) might crowd out the desire to cut emissions. Fear of this crowding-out effect ranks among the most frequently cited risks of (solar) geoengineering. We here test moral hazard versus its inverse in a large-scale, revealed-preference experiment (n~340,000) on Facebook and find little to no support for either outcome. For the most part, talking about SRM or CDR does not motivate our study population to support a large U.S.

Strategies for coping with businesses that face the declining demand of late life-cycle products are
revisited in light of the enhanced competitive capabilities made possible by access to the World
Wide Web and connectivity to the Internet. Presumably endgame competitors may draw upon a
wider variety of implementation options on both the demand and supply sides when serving the
highly-connected markets reached via Internet access. Results are posited to be mixed since supply-

How can we measure the extent to which data-intensive firms are using their market power? Economists typically look to markups as evidence of market power. Using a simple model with firms that price risk in their capital allocation and production decisions, we highlight the competing forces that make markups an unreliable measure of data-derived market power. Instead, we show how markups measured at different levels of aggregation reflect data and distinguish data from other intangible investments.