3 papers
econ.TH2025
Menu Pricing of Large Language Models
Dirk Bergemann, Alessandro Bonatti, Alex Smolin
We develop a framework for the optimal pricing and product design of LLMs in which a provider sells menus of token budgets to users who differ in their valuations across a continuu…
econ.TH2023
Data, Competition, and Digital Platforms
Dirk Bergemann, Alessandro Bonatti
We analyze digital markets where a monopolist platform uses data to match multiproduct sellers with heterogeneous consumers who can purchase both on and off the platform. The platf…
econ.TH2023
How Do Digital Advertising Auctions Impact Product Prices?
Dirk Bergemann, Alessandro Bonatti, Nicholas Wu
We present a model of digital advertising with three key features: (i) advertisers can reach consumers on and off a platform, (ii) additional data enhances the value of advertiser-…