Arbeitspapier
Value Creation by Ad-Funded Platforms
We identify features of interactions on online platforms that make an ad-funded business model attractive for the platform, but also for consumers. We then show that ad-funded platforms heavily rely on data for their ability to create value for their users. Formally, we show that data restrictions may trigger a switch away from ad-funded to fee-funded model, resulting in a loss of consumer welfare. We also argue that restricting the effort to increase data quality weakens competition to the detriment of consumers.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 9525
- Classification
-
Wirtschaft
Antitrust Law
Firm Organization and Market Structure
Antitrust Issues and Policies: General
Advertising
- Subject
-
ad-funded business model
data aggregation restrictions
targeted advertising
platform competition
merchant competition
transaction costs
- Event
-
Geistige Schöpfung
- (who)
-
Langus, Gregor
Lipatov, Vilen
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Langus, Gregor
- Lipatov, Vilen
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2022
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