Document type

Working paper

Publication date

Publication license

cc-by-nc-nd, (c) Piolatto, 2020
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/169489

‘Information doesn’t want to be free’: informational shocks with anonymous online platforms

Journal Title

Director/Tutor

Journal ISSN

Volume Title

Related resource

Abstract

Anonymous information platforms (e.g. Airbnb) provide information about experience goods while keeping agents’ identity hidden until the transaction is completed. In doing so, they generate heterogeneity in the information levels across consumers. In this paper, I show that such platforms induce a weak increase of offline prices and that only low-valuation goods are cheaper online than offline. Platforms always lead to an increase in profits. In terms of consumer welfare, the platform equilibrium is Pareto superior for low-and high-valuation goods, while for intermediate ranges some buyers benefit while others lose from the presence of the platform.

Citation

Citation

PIOLATTO, Amedeo. ‘Information doesn’t want to be free’: informational shocks with anonymous online platforms. IEB Working Paper 2020/08. [consulted: 18 of June of 2026]. Available at: https://hdl.handle.net/2445/169489

Export metadata

JSON - METS

Share record