Prioritization vs. congestion on platforms: evidence from Amazon's Twitch.tv

• 成果类型: Article
• 署名作者: Tudon, Jose
• 署名单位: Instituto Tecnologico Autonomo de Mexico
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12409
• 发表日期: 2022
• 页码: 328-355
• 关键词: net neutrality; internet; models

摘要

This article studies the efficient use of prioritizing certain content over others in Amazon's Twitch.tv, a live streaming service, taking into account the trade-off between entry and congestion. I specify and estimate supply and demand models for live video, and a congestion model. Using technological shocks, I identify congestion costs for content providers and their consumers. Using shocks in prioritization, I identify its benefits. With estimated preferences and technological parameters, I construct counterfactuals. Without congestion, demand doubles. A supply-side Pigouvian tax on traffic is preferred to a demand-side one. Without prioritization, consumer welfare drops by 10%.