Answer to Question #211942 in Economics for Vantela Gjata

Question

Provide a short written assessment of the following statements. Evaluate the veracity of

the statement. Provide a single argument in up to three sentences for each statement

a) Privacy regulation { that exceeds informing the consumer about how her data is

used { is not necessary and not efficient.

b) A platform operator running a two-sided market can find it optimal to set prices

below zero for one side of the market.

c) The size of a network depends on how consumers form expectation on the choices

of other consumers.

d) When advertising has a negative externality on consumers in a two-sided market

context, a monopoly platform operator should increase the prices to advertisers

compared to the case of no-externality. Thus the platform operator makes larger

profits with negative ad externalities.

Answer 1

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