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Competition, Contracts, and Creativity: Evidence from Novel Writing in a Platform Market.

Title: Competition, Contracts, and Creativity: Evidence from Novel Writing in a Platform Market.

 

Speaker: Yanhui Wu(University of Southern California, Assistant Professor)

Host: Haisheng Yang (Lingnan College, Sun Yat-Sen University, Associate Professor)

Time: 2 July, 2018, 14:30-16:00

Seminar Room:Wang Daohan Room, Lingnan Hall

Language: Chinese + English

 

Abstract:

This paper examines how incentive contracts alter the effect of product competition on innovative outcomes in a Chinese online novel-writing platform. Exploiting a regulatory change that induces massive entry of novels, we find that intensified competition leads to (1) increases in views and purchases; (2) more frequent updates and more creative writing of books under revenue-sharing contracts; and (3) more platform promotion for books under fixed-price contracts. Moreover, competition increases the likelihood for authors to sign fixed-price contracts. These results show that contractual inefficiency lessens the effect of competition on innovative efforts, and the platform’s market power exacerbates this consequence.

 

About the Seminar Speaker: Dr. Yanhui Wu is an Assistant Professor of Finance in University of Southern California. His research is mainly in knowledge innovation, big data and media. His paper has been published and accepted in American Economic Review, Journal of Economic Perspectives, Review of Economics and Statistics, Economic Journal, Management Science, Organization Science and etc.

http://www-bcf.usc.edu/~yanhuiwu/

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