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We discuss network neutrality regulation of the Internet in the context of a two-sided market model. Platforms sell broadband Internet access services to residential consumers and may set fees to content and application providers on the Internet. When access is monopolized, cross-group externalities (network effects) can give a rationale for network(More)
Private equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tend to marginally fall after a buyout in most countries studied, with the exception being France. There are clear evidence of(More)
We compare four approaches to network neutrality and network management regulation in a two-sided market model: (i) no variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination; (iii) variations in Quality of Service and price discrimination but no exclusive contracts; and (iv) no(More)
Casual observation suggests that Internet media firms sometimes allow consumers to pay to remove advertisements from a free advertisement-based product. In this paper I characterize when this business model is optimal and analyze its impact on advertising quantity and the distribution of surplus. The optimality of the business model depends on the relation(More)
We explore whether the tendency for smaller firms to have fewer hierarchical layers explains the well‐documented inverse correlation between firm size and the rate at which employees become business owners. Our analysis is based on a Swedish matched employer‐employee dataset. Conditional on firm size, employees in firms with more layers are less likely to(More)
Private equity firms are an important part of the industrial restructuring process. We argue that the key is temporary ownership. Buying to sell induces aggressive restructuring since the equilibrium trade sale price increases both because the profits of the acquiring incumbent increase and the profits of non-acquiring incumbents decrease. Therefore,(More)
What makes a CEO? We merge data on the traits of more than one million Swedish males, measured at age 18 in a mandatory military enlistment test, with data on their service as a CEO of any Swedish company decades later. CEOs have higher cognitive and non-cognitive ability scores and are taller than typical members of the population. The difference in traits(More)
This paper studies an industry where firms can choose to provide open or closed platforms. Open, as opposed to closed, platforms are extendable so that third-party producers can develop extensions for them. Building on a two-sided market model, I show that firms might prefer to commit to keeping their platforms closed despite the fact that opening the(More)
Although private equity firms are often criticized for layoffs, little evidence exists regarding which employees lose their jobs and why. We argue that explanations for the job polarization process can also explain layoffs after buyouts. Buyouts reduce agency problems, which triggers automation, offshoring, and tougher bargaining with labor unions. We show(More)