Calendrier du 28 mai 2018
Roy Seminar (ADRES)
Du 28/05/2018 de 17:00 à 18:30
Salle R1-09, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
FEINMESSER Itay (Johns Hopkins University)
The Market for Influence
Much of the content we consume comes from onlineresources. We read news on Facebook and Twitter and learn about new products and services from Instagram and blogs. This paper builds a parsimonious economic model that captures the interplay between contentcreators (or influencers), consumers (or followers), and firms (or marketers) in the provision of content on the internet, and in influencing economic activity in the market for goods. We derive a unique equilibrium with the following properties: First, high ability influencers post more sponsored content, and this adversely affects the experience of their followers. Still, high ability influencers deliver, in equilibrium, better experience then low ability ones. As a result, high ability influencers have more followers, and receive a higher per-post price. Surprisingly, the per-reader price that an influencer receives declines with her popularity, a result that is confirmed by marketing data. We uncover equilibrium inefficiencies that are exacerbated by search frictions in the market and analyze the recent recommendation of the Federal Trade Commission (FTC) to apply “The FTC’s Endorsement Guides” to content created by individual influencers. Under a wide range of parameters, such policy may be detrimental to followers’ welfare and total surplus.
Régulation et Environnement
Du 28/05/2018 de 12:00 à 14:00
Salle R1-13, Campus Jourdan, 48 boulevard Jourdan, 75014 Paris
ELLISON Glenn (MIT)
A Model of Online Retail Recommendations