The economics of market thickness
- This work investigates the differences between thin and thick markets, both on the demand side and on the supply side. The first chapter deals with the effects of market thickness in a list-order market, a market where sellers list goods for sale and determine the ask price, and buyers choose among the goods listed for sale but can not negotiate the prices. We focus on the supply side in this market, and show that in thicker markets, markets in which both buyers and sellers arrive more frequently, sellers raise their prices. This finding indicates that a thick market is not necessarily more efficient that a thin market, at least in the sense that the final allocation of goods might leave a larger share of potentially beneficial trades unfulfilled. The second and third chapters deal with the effects of online news on the political media market. The introduction of the Internet as a publishing medium for news changed the cost structure on the supply side of the political news market: the lower cost of content production and publishing turned niche issues and views into viable markets. The second chapter develops a theory that explains why people who seek news online tend to be, on average, more non-centrist than people who do not and provides some empirical evidence that this is indeed the case. The third chapter investigates whether the introduction of broadband Internet swayed people's views away from center, but finds no evidence for such influence. It seems that by lowering content production costs on the supply side, the markets for news with non-centrist slant became thicker on the supply side, but made no impact on the demand side.
|Type of resource
|electronic; electronic resource; remote
|1 online resource.
|Golde, Saar David
|Stanford University, Department of Economics
|Bresnahan, Timothy F
|Bresnahan, Timothy F
|Statement of responsibility
|Submitted to the Department of Economics.
|Thesis (Ph.D.)--Stanford University, 2010.
- © 2010 by Saar David Golde
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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