Addictive platforms / by Shota Ichihashi and Byung-Cheol Kim.: FB3-5/2022-16E-PDF

"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"--Abstract.

Permanent link to this Catalogue record:
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Publication information
Department/Agency Bank of Canada, issuing body.
Title Addictive platforms / by Shota Ichihashi and Byung-Cheol Kim.
Series title Staff working paper = Document de travail du personnel, 1701-9397 ; 2022-16
Publication type Series - View Master Record
Language [English]
Format Electronic
Electronic document
Note(s) "Last updated: April 1, 2022."
Includes bibliographical references (pages 23-26).
Includes abstract in French.
Publishing information Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2022.
©2022
Author / Contributor Ichihashi, Shota, author.
Description 1 online resource (ii, 45 pages) : charts.
Catalogue number
  • FB3-5/2022-16E-PDF
Subject terms Social media -- Economic aspects.
Consumer behavior -- Econometric models.
Médias sociaux -- Aspect économique.
Consommateurs -- Comportement -- Modèles économétriques.
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