Invites you to a

Microeconometrics & Public Policy seminar presented by

Tiffany Tsai
(National University of Singapore)

Price Competition Under Information (Dis)advantage

Friday, 16 June 2023

12.00pm – 1.00pm

Level 6 Seminar Room (650)

A02 Social Sciences Building

Camperdown Campus

The University of Sydney NSW 2006

We examine the impact of data access within a vertically integrated e-commerce platform. Using a unique daily panel, we find that both the platform owner and third-party sellers base pricing on past sales, but only the owner exploits competitors’ sales data. We estimate a price competition model with heterogeneous seller learning. We find that (1) eliminating the owner’s access to competitors’ data increases social welfare by 0.33%, negatively impacting the owner through reduced first-party sales and (2) providing third-party sellers with equal access to competitors’ data as the owner increases social welfare by 1.65%, benefiting the owner through increased referral fees and yielding a Pareto improvement.

For further information contact: Microeconometrics & Public Policy Seminar Coordinator Dr Gregor Pfeifer (gregor-gabriel.pfeifer@sydney.edu.au)

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