Seminar series of the Finance Economics and Econometrics Lab Speaker: Leonardo Madio (Padova Univ). Title: “Platform Liability and Innovation ” joint with Doh-Shin Jeon (TSE) and Yassine Lefouili (TSE). Date: Thursday, December 2nd at 12h30 (Paris Time)....
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Seminar series of the Finance Economics and Econometrics Lab Speaker: Leonardo Madio (Padova Univ). Title: “Platform Liability and Innovation ” joint with Doh-Shin Jeon (TSE) and Yassine Lefouili (TSE). Date: Thursday, December 2nd at 12h30 (Paris Time). Abstract: We study an e-commerce platform’s incentives to delist IP-infringing products and the effects of introducing a liability regime that induces the platform to increase its screening intensity. We identify conditions under which platform liability is socially desirable (respectively, undesirable) by analyzing its intended and unintended effects on the innovation incentives of brand owners. We show that making the platform liable for the presence of IP-infringing products can lead to a reduction (instead of an increase) in brand owners’ innovation if the platform responds to more screening by raising its commission rate. We then consider various extensions that allow us to identify additional forces that strengthen (respectively,
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