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- W4282024669 abstract "We study competition for consumer attention in which platforms can sacrifice service quality for attention. A platform can choose the “addictiveness” of its service. A more addictive platform yields consumers a lower utility of participation but a higher marginal utility of allocating attention. We provide conditions under which increased competition can harm consumers by encouraging platforms to offer low-quality services. In particular, if attention is scarce, increased competition reduces the quality of services because business-stealing incentives induce platforms to increase addictiveness. Restricting consumers’ platform usage may decrease addictiveness and improve consumer welfare. A platform’s ability to charge for its service can also decrease addictiveness. This paper was accepted by Joshua Gans, business strategy." @default.
- W4282024669 created "2022-06-13" @default.
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- W4282024669 date "2023-02-01" @default.
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- W4282024669 title "Addictive Platforms" @default.
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- W4282024669 doi "https://doi.org/10.1287/mnsc.2022.4392" @default.
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