nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2013‒11‒14
two papers chosen by
Walter Frisch
University Vienna

  1. Video Games Playing: A substitute for cultural consumptions? By Karol J. Borowiecki; Juan Prieto-Rodriguez
  2. Selling Cookies By Bergemann, Dirk; Alessandro Bonatti

  1. By: Karol J. Borowiecki (Department of Business and Economics at University of Southern Denmark); Juan Prieto-Rodriguez (Departament of Economics, University of Oviedo)
    Abstract: This article provides an applied investigation of video game users. We estimate zero-inflated ordered probit models to control for an excess of zeros in our ordinal dependent variable. We find that video games playing is not negatively associated with the involvement in other cultural practices. On the contrary, instead of being a substitute for more traditional forms of cultural consumption, the probability of game playing increases with the consumption of other cultural goods (e.g., listening to music or watching television) or active involvement in artistic activities (e.g., writing or visual arts production). Game playing is in general an urban phenomenon, and it is positively associated with the ownership of home equipment and access to new technologies but decreases with a personÕs greater time restrictions. The main differences to the traditional art formats is that game playing particularly appeals to younger, usually male, cohorts.
    Keywords: Cultural participation, Video games, Zero-inflated ordered probit model
    JEL: D12 R12 I29 J29 Z11
    Date: 2013–11
  2. By: Bergemann, Dirk (Cowles Foundation, Yale University); Alessandro Bonatti (Sloan School of Management, MIT)
    Abstract: We analyze data pricing and targeted advertising. Advertisers seek to tailor their spending to the value of each consumer. A monopolistic data provider sells cookies. informative signals about individual consumers' preferences. We characterize the set of consumers targeted by the advertisers and the optimal monopoly price of cookies. The ability to influence the composition of the targeted set provides incentives to lower prices. Thus, the price of data decreases with the reach of the database and increases with the fragmentation of data sales. We characterize the optimal policy for selling information and its implementation through nonlinear pricing of cookies.
    Keywords: Data providers, Information sales, Targeting, Online advertising, Media markets
    JEL: D44 D82 D83
    Date: 2013–10

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