Entry Barriers, Limit Pricing, and Incomplete Information

The aim of this work is to describe some of the major contributions to the theory of oligopoly with free entry, tracing the evolutionary phases and clarifying the interconnections between different models. In particular we will first analyze the starting contributions of the 1950’s which gave rise to the so-called limit pricing theory; then we will introduce the role of capacity in deterring entry; finally we will analyze a model with incomplete information in which both established and potential firms are not fully informed about others’ cost functions

Entry Barriers, Limit Pricing, and Incomplete Information

The aim of this work is to describe some of the major contributions to the theory of oligopoly with free entry, tracing the evolutionary phases and clarifying the interconnections between different models. In particular we will first analyze the starting contributions of the 1950’s which gave rise to the so-called limit pricing theory; then we will introduce the role of capacity in deterring entry; finally we will analyze a model with incomplete information in which both established and potential firms are not fully informed about others’ cost functions

Privacy regulation and online concentration during demand peaks: evidence from the E-commerce sector

In this paper, we study how the introduction of the GDPR affected online traffic and concentration. We rely on a unique dataset collecting information on websites' visits in the E-commerce sector, and we implement a difference-in-differences model that exploits the geographical origin of website traffic. We classify websites according to their pre-GDPR amount of visits to capture potential heterogeneous effects based on websites' size. We exploit the advent of the 2018 Black Friday to assess how online consumption and concentration react in a period of demand peak when constrained by privacy regulation. Our findings show that (1) online traffic decreases after GDPR, (2) the impact is higher for small websites which however gain traffic during demand peaks, and (3) online concentration decreases in Germany but increases in Italy

Digital highways and firm turnover

We study the impact of ultra‐broadband (UBB) internet connections on firmentry and exit dynamics. These connections are based on optical fiber cablesthat link telecommunication operators to final users, allowing a significantlyhigher performance compared with traditional copper‐line networks. Weleverage on a unique comprehensive dataset collecting municipality‐levelinformation on broadband diffusion and firm turnover in Italy for the periodof 2012–2019. Our empirical strategy exploits the staggered roll‐out of UBB,starting from 2015. Our identification strategy is based on an instrumentalvariable approach that exploits plausibly exogenous variation in the physicaland geographical peculiarities of the telecommunication infrastructure.Results suggest that UBB increases firm exit, particularly for small firms. Onthe contrary, firm entry rises only in digital intensive sectors and in the mostdeveloped geographical areas. Our findings have important implications forthe ongoing debate around the massive investments in high‐speed digitalinfrastructures, as they argue against the conventional idea that businessactivities equally benefit from last‐generation broadband technologies

Privacy regulations and online safety: evidence from adult-only websites

We study the effects of the introduction of a more stringent privacy legislation on the consumption of websites that increase consumers' exposure to privacy risk. We exploit panel data on online traffic on top 1000 domains in US and EU, before and after the introduction of the GDPR. We find that the traffic on Adult-only websites increased by 11% after the enactment of the GDPR, whereas it decreased by 7% in other websites. We show through a theoretical model that, because of their high privacy risk, the demand of Adult-only websites is analogous to that of a Giffen good

Ultra-Fast Broadband Access and Productivity: Evidence from Italian Firms

We study the impact of ultra-fast broadband (UFB) infrastructures on the total factor productivity (TFP) and labor productivity of firms. We use unique balanced panel data for the 2013-2019 period on incorporated firms in Italy. Using the geographical location of the firms, we match firm data with municipality-level information on the diffusion of UFB, which started in 2015 in Italy. We derive consistent firm-level TFP estimates by adopting a version of the Ackerberg et al.’s (2015) method, which also accounts for firm fixed effects. We then assess the impact of UFB on productivity and deal with the endogeneity of UFB by exploiting the physical distance between each municipality and the closest backbone node. Our results show an overall positive impact of UFB on productivity. Services companies benefit the most from advanced broadband technologies, as do firms located in the North-West and South of Italy. We further decompose the impact of full-fiber networks (FTTH) from mixed copper-fiber connections (FTTC) and find that FTTH networks significantly contribute to enhancing firm productivity. Finally, by exploiting Labor Force Survey data, we provide suggestive evidence that productivity increases from UFB might be related to structural changes at the workforce level.info:eu-repo/semantics/publishe

Antioxidants in the Diet and Cognitive Function: Which Role for the Mediterranean Life-style?

This review aims to focus on main antioxidants- abundantly contained in the diet- as well as of the whole Mediterranean diet and life-style and their relationship with cognitive function, especially critical in two phases of life, in children until adolescence and oldness. The role of emerging biochemical and molecular biomarkers as opportunity to estimate more accurately nutritional assumption and requirement, in terms of cognitive preservation and disease risk, will be also discussed. The cluster of factors within the Mediterranean pattern -which include not only nutritional, but also physical, social, and stimulating aspects- is still largely understudied as a whole, but it is proposed as attractive research area and tool for public health planning of prevention and intervention