Estrella Gomez-Herrera, Néstor Duch-Brown, M. Latorre
{"title":"EU-Mercosur Free Trade Agreement: Exploring the Impact on E-Commerce","authors":"Estrella Gomez-Herrera, Néstor Duch-Brown, M. Latorre","doi":"10.2139/ssrn.3967047","DOIUrl":"https://doi.org/10.2139/ssrn.3967047","url":null,"abstract":"Abstract Recent technological changes have altered the way in which interactions take place between economic agents. One of the main advances is the possibility to broadly disseminate information at very low cost. E-commerce is a significant part of this change, becoming increasingly important within the EU. In this paper we analyze the impact of the recent trade agreement reached between EU and Mercosur countries on e-commerce flows. We take advantage of the political agreement announced on June 28, 2019 as a source for identification. We use data from SimilarWeb, a digital market intelligence company that provides information on worldwide Internet traffic. Our results show that the announcement of the Agreement has had a positive impact on Internet traffic between EU and Mercosur countries. To the best of our knowledge, this is the first empirical exercise to analyze the impact of this and other Agreements on e-commerce.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"29 1","pages":"29 - 50"},"PeriodicalIF":0.7,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82658317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of E-Commerce on Grocery Store Choice and Retail Competition","authors":"Clara Etcheverry","doi":"10.1515/rne-2023-0017","DOIUrl":"https://doi.org/10.1515/rne-2023-0017","url":null,"abstract":"Abstract E-commerce continues its expansion, and most retail groups have opened online distribution channels in the French grocery market. Using purchasing data, I develop a store choice model and a supply model to estimate the effect of the online distribution channel on consumer welfare and retail competition. E-commerce leads to a small decrease in consumer surplus. Furthermore, only online leaders obtain more market shares and profits while the majority of retailers globally get lower market shares and profits with e-commerce.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"2 2 1","pages":"1 - 28"},"PeriodicalIF":0.7,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76315961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Health Care Provider Networks: Are Insurers Better Off?","authors":"M. Mougeot, Florence Naegelen","doi":"10.1515/rne-2021-0038","DOIUrl":"https://doi.org/10.1515/rne-2021-0038","url":null,"abstract":"Abstract Certain health insurers offer a free choice of providers and an identical copayment regardless of the provider. Others build networks and use selective contracting and financial incentives to channel policyholders to contracted suppliers. In the case of unregulated prices, we compare these two policies when the off-network medical service is not covered. We show how policy ranking depends on the characteristics of demand. If demand is linear, a for-profit insurer and a not-for-profit insurer obtain a higher profit and utility under selective contracting than under uniform reimbursement. In the constant elasticity case, these results do not hold. Insurers prefer uniform reimbursement while consumers are better off under selective contracting in both cases.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"16 1","pages":"187 - 212"},"PeriodicalIF":0.7,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79640333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Multimarket Contact and Profitability Implications for US Airlines","authors":"Jules O. Yimga","doi":"10.1515/rne-2022-0031","DOIUrl":"https://doi.org/10.1515/rne-2022-0031","url":null,"abstract":"Abstract Routine industrial analyses use internal market characteristics such as market shares to proxy for market power. However, recent studies argue that factors that are external to the market such as contact across multiple markets can be linked to tacit collusion. Using a structural demand and supply model for air travel, we quantify the variable profit effects of multimarket contact. We find that multimarket contact results in increases in variable profits ranging between $15,000 and $20,000 per contact in a quarter. Extrapolating this estimate across all contacts proves to be quite sizeable. These positive responses in profitability are especially stronger in less competitive markets. Our results, taken together, lend support to the mutual forbearance hypothesis.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"76 1","pages":"213 - 230"},"PeriodicalIF":0.7,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75037940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Platform Pricing Choice: Exclusive Deals or Uniform Prices","authors":"Shiva Shekhar","doi":"10.1515/rne-2017-0016","DOIUrl":"https://doi.org/10.1515/rne-2017-0016","url":null,"abstract":"Abstract Platforms choose between offering exclusive deals or uniform prices to content providers in a setting where content providers can multi-home or single-home. We find that platforms offer exclusive deals for sufficiently large or sufficiently small values of standalone benefits. For sufficiently large or small standalone benefits, there are relatively large or small proportion of multi-homers to single-homers, exclusive deals allow to extract more efficiently from the content provider type that is relatively large in the market. Hence, it becomes more lucrative to employ exclusive deals regardless of the pricing strategy chosen by rival platform. We find that for standalone benefits being sufficiently small, exclusive deals equilibrium is also the industry profit enhancing outcome. On the other hand, when standalone benefits are large, exclusive pricing deals equilibrium leads to a prisoner’s dilemma type of outcome.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"14 1","pages":"159 - 186"},"PeriodicalIF":0.7,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76921788","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On the Invariance Result of Net Neutrality","authors":"Jeong‐Yoo Kim","doi":"10.1515/rne-2022-0002","DOIUrl":"https://doi.org/10.1515/rne-2022-0002","url":null,"abstract":"Abstract In an influential paper, Choi and Kim (2010) established the invariance result that given a fixed network capacity, the average waiting times are identical regardless of net neutrality. In this paper, we argue that their result relies on the assumption that the distribution for content requests per end user is the same regardless of net neutrality. However, if the distribution is determined by the underlying utility maximization problem of users, users expect the contents they request to be transmitted faster if the contents have priority, implying that the request rate for prioritized contents is higher than the request rate for unprioritized contents under net neutrality. If the content request rates per user differ across the two regimes (net neutrality vs. no net neutrality), the invariance result may not be valid. We also discuss social welfare and the investment incentive of the Internet service provider in an extended model with variable content request rates.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"68 10 1","pages":"139 - 157"},"PeriodicalIF":0.7,"publicationDate":"2021-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90253200","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Card Acceptance by Small Merchants: An Application of the Tourist Test to Peru","authors":"José Aurazo, Milton Vega","doi":"10.1515/rne-2021-0024","DOIUrl":"https://doi.org/10.1515/rne-2021-0024","url":null,"abstract":"Abstract This paper presents a first estimation of the tourist test threshold for interchange fees that makes Peruvian small merchants indifferent between accepting cash and debit cards at the point of sale. We use the tourist test model (initially proposed by Rochet and Tirole), including tax evasion (Aurazo and Vasquez’s model) as an extra factor in the merchants’ decision between cash and card payments. Also, we revisit the existing empirical approaches and propose a new empirical approach, coined as the cash-flow approach, which assumes that small merchants estimate the overall cost in terms of the average ticket related to cash and card payments. Using a Survey on private costs of payment instruments conducted by the Central Reserve Bank of Peru in 2019, our estimates suggest that the tourist test threshold for debit cards is lower than the current interchange fee until 2019, even if tax evasion is not considered. Also, this study helps policymakers to better understand the factors around the merchants’ decision that may be considered to foster digital payments.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"34 1","pages":"101 - 137"},"PeriodicalIF":0.7,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82622601","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Broadband Internet and Income Inequality","authors":"G. V. Houngbonon, Julienne Liang","doi":"10.1515/rne-2020-0042","DOIUrl":"https://doi.org/10.1515/rne-2020-0042","url":null,"abstract":"Abstract Digital technologies like the Internet can affect income inequality through increased demand for employment in manual and abstract jobs and reduced demand for employment in routine jobs. In this paper, we combine city-level income distribution and jobs data with broadband data from France to investigate the impact of broadband Internet access on income inequality. Using an instrumental variable estimation strategy, we find that broadband Internet reduces income inequality through increased employment in manual jobs. These effects increase with the availability of skilled workers and are significant in cities with a large service sector or high-speed Internet access. Further, the diffusion of broadband Internet comes with relatively greater benefits in low-income cities compared to high-income cities. Several robustness checks support these findings.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"54 1","pages":"55 - 99"},"PeriodicalIF":0.7,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73043390","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competition and Schedule Padding in the US Airline Industry","authors":"Jules O. Yimga","doi":"10.1515/rne-2021-0016","DOIUrl":"https://doi.org/10.1515/rne-2021-0016","url":null,"abstract":"Abstract Disclosure programs can help consumers with limited information about product quality make better purchase decisions. A quality disclosure mandate such as the On-Time Disclosure Rule in the U.S. that requires airlines to provide information on the quality of their products can be beneficial, but can also be counterproductive if it encourages airlines to act deceptively by “gaming” the system. If airlines care about public perceptions of their on-time record, they have an incentive to improve their on-time performance ranking by resorting to unscrupulous means such as padding their schedules beyond normal time required to absorb scheduling stochastic fluctuations. This study investigates the impact of competition on airline schedule padding. We construct a measure for schedule padding under different optimal flight time choices. Using different measures of market structure, we find that more competitive (concentrated) markets are subject to less (more) schedule padding.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"2 1","pages":"1 - 33"},"PeriodicalIF":0.7,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85073838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bundling and Consumer Churn in Telecommunications Markets","authors":"L. Grzybowski, Julienne Liang, Christine Zulehner","doi":"10.1515/rne-2021-0032","DOIUrl":"https://doi.org/10.1515/rne-2021-0032","url":null,"abstract":"Abstract In this paper, we analyze how fixed-mobile (quadruple-play) bundling impacts the decision of consumers to churn telecommunications services. We use a database from an European operator of fixed and mobile telecommunications services which includes information about 9.6 million fixed broadband subscribers and 14.2 million mobile subscribers between March 2014 and February 2015. These data is combined with socio-demographic characteristics from each municipality in this country. We find that consumers who bundle fixed and mobile services from the same provider are less likely to churn. Without fixed-mobile bundling the annual churn of fixed broadband consumers would increase from 8.4 to 9.2%. Furthermore, the consumer churn in the mobile market would increase from 11.5 to 13.1%. We conclude that in the current competitive environment in the country considered, bundling has a moderate impact on consumer retention on both fixed and mobile networks.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"9 1","pages":"35 - 54"},"PeriodicalIF":0.7,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78809260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}