Data (R)Evolution – The Economics of Algorithmic Search and Recommender Services

Budzinski, Oliver; Gänßle, Sophia; Lindstädt-Dreusicke, Nadine

doi:10.2139/ssrn.3769386

Cited by 7 publications

(4 citation statements)

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“…Yet, there are new gatekeepers, first and foremost the platform immanent algorithms. Sophisticated recommendation services manage scarce consumer attention and pre‐select content according to individual preferences (Budzinski et al, 2021). A study by Richard et al (2020) shows indicators that Instagram biases content allocation and favors nude content.…”

Section: Discussionmentioning

confidence: 99%

“…Not all posts reach the entire audience. Instagram can pre-select according to preferences (and other settings) and has algorithmic recommendations for consumers based on personalized data (Budzinski et al, 2021). As such, and from the star's point of view, it acts as a filter, managing which types of content reach the target group.…”

Section: Types Of Platform Immanent Paymentsmentioning

confidence: 99%

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Income distribution and nudity on social media: Attention economics of Instagram stars

Gaenssle

2023

Kyklos

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Social media stars gain star‐status with uploads on social media pages like YouTube, TikTok, or Instagram. One of the most popular platforms is “Instagram” owned by Meta/Facebook. The growing social, cultural, and economic power of so‐called influencers raises questions about key drivers of success and, moreover, distribution of income on social media platforms. Instagram has been accused of strategically favoring images with nude content. In order to shed light on this socio‐critical aspect, this paper examines the following research questions: Does body exposure drive income success on Instagram? Is there a difference between male and female content in this regard? This paper empirically analyzes 500 top Instagram stars within the categories (1) fashion and beauty, (2) fitness and sports, (3) music, (4) photo and arts, and (5) food and vegan. The data provide information on popularity, posting behavior, and price estimates per post. Using hybrid regression models, the results show indeed positive impact of body exposure on monetary success. Accounts with high level of body exposure achieve higher prices and advertising revenues than accounts with less nudity, regardless of the gender. Regarding gender differences, male content achieves on average higher advertising prices, whereas female accounts provide more branded content and eventually achieve higher advertising revenues.

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Section: Discussionmentioning

confidence: 99%

Section: Types Of Platform Immanent Paymentsmentioning

confidence: 99%

Income distribution and nudity on social media: Attention economics of Instagram stars

Gaenssle

2023

Kyklos

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“…Here, the combination of (i) bounded-rational and imperfectly informed users and (ii) the presence of vertical integration (or comparable vertical contractual relations with e.g. upstream suppliers) is already sufficient to create anticompetitive gatekeeping power (Budzinski 2021a, b;Budzinski, Gaenssle & Lindstädt-Dreusicke 2021b). The thus generated dual role is likely to be exploited, for instance, through purposefully biasing the algorithm-based ranking in a way that not only seeks to provide a ranking matching based on individual preferences of the users, but also includes self-preferencing -i.e., ranking its own upstream goods systematically better than those of the closest competitors.…”

Section: The Concept Of Gatekeepersmentioning

confidence: 99%

Regulating Big Tech: From Competition Policy to Sector Regulation?

Budzinski,

Mendelsohn

2022

Ordo

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The European Commission has proposed a new regulatory tool to govern of digital markets. The Digital Markets Act (DMA) intents to limit the market behavior of so-called gatekeepers to ensure contestable and fair digital markets. We review the provisions of the DMA both from a legal and from an economic perspective. Notwithstanding a number of benefits, we identify several issues with the current proposal. When looking at the core provisions of the proposal from an economic perspective, a number of of contention arise: many of the provisions seem to be quite narrow in scope and it seems difficult to extrapolate more general rules from them; the economic harm of some of the provisions is both uncertain and in principle debatable; the alleged (self-executing; non self-executing) distinction between different types of obligations cannot be verified; and, in addition, Art. 5–7 DMA seem to contain three distinct regulatory instruments; last but not least, while the DMA seeks to control existing gatekeepers, the “tipping” of markets and the rise of further gatekeepers is not guaranteed by the proposed regulation, this in turn leads to a larger critical analysis of the gatekeeper as the DMA’s norm addressee. While the goals and nature of the DMA have gained in clarity throughout the legislative process, its scope remains somewhat obtuse. On the one hand it seems set on regulating gatekeepers as they exist today, on the other, it also aims to bring about systemic change in the digital single market. How it expects to achieve the latter is not entirely clear. On closer examination, the DMA also contains a complex enforcement regime that not only depends on the compliance of gatekeepers but may also forestall the envisioned speed and efficacy of the instrumment. In this light and by critically looking at the nature of ex ante and ex post measures in broader competition policy, we conclude that a reform of the competition policy regime would better suit the overalls aims of reining in big tech in future.

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“…(iv) Self-favoring or self-preferencing -is a practice in which DPA gives priority to goods offered by the manufacturer of this DPA; such practice arises in the presence of CMI and causes particular harm to suppliers of goods in markets adjacent to the DPA as a gatekeeper since it artificially reduces competition on merits. The topic is closely connected to discussion on algorithmic search and recommendation systems which empower DPAs suggestions and could be biased during personalization of outcomes (Budzinski et al 2021a;Bourreau & Gaudin 2018). From structural perspective practice addressed in literature on dual role of intermediary, which states different results of welfare analysis depending on heterogeneity of consumers' and firm's goals, e.g.…”

Section: P3 -Vertical Rising Rivals Costs' Strategies: Quality Dimensionmentioning

confidence: 99%

Voice Assistants as Gatekeepers for Consumption? - How Information Intermediaries Shape Competition

Noskova

2021

SSRN Journal

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In December 2020, new regulation of digital markets was proposed by European Commission.It specifically addresses main concerns raised by business behavior of operators of core services in their gatekeeping positions. However, voice assistants (or digital personal assistants, DPAs, e.g. Apple's Siri, Amazon's Alexa, Google Assistant) are not included into this regulation. In contrast, the Internal Market and Consumer Protection Committee of European Parliament suggested to include them. This paper argues that (i) voice assistants as gatekeepers for consumption should be listed among core services, (ii) some Digital Market Act's obligations need to be adopted to fit specifics of voice assistants, (iii) two relevant dimensions of power should be included into rebuttable presumptions used for competition policy and regulation: market power on voice assistants' market and ecosystem of related markets (cross-market integration criterion), (iv) growth of new gatekeepers should be prevented, among other means by stricter merger control.

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Data (R)Evolution – The Economics of Algorithmic Search and Recommender Services

Cited by 7 publications

References 0 publications

Income distribution and nudity on social media: Attention economics of Instagram stars

Income distribution and nudity on social media: Attention economics of Instagram stars

Regulating Big Tech: From Competition Policy to Sector Regulation?

Voice Assistants as Gatekeepers for Consumption? - How Information Intermediaries Shape Competition

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