Upcoming Session
Tuesday, March 3, 2026
17h30
Presented by
Michela Boldrini (Bocconi University)
https://sites.google.com/view/michelaboldrini/home

Taming Tech Giants Algorithms: An Analysis of Consumers' Choices on Amazon

Abstract

Many digital platforms operate as two-sided markets, facilitating the matching between sellers and buyers. The Amazon case is particularly interesting because of the dual role the tech giant plays: Amazon both controls the rules of the game, through platform design choices, and participates as a player itself, operating as a seller. What do consumers know about Amazon’s platform functioning? Would they behave differently if they knew how the type and the amount of information they are provided with is filtered/manipulated? This paper focuses on a peculiar and distinctive algorithmic-driven Amazon’s feature: the Buy-Box. Through a framed field experiment, we collect individual-level data on real consumers’ search and purchase behavior on the marketplace in a controlled environment, where we can manipulate the amount of information disclosed on the functioning (and the hidden risks) of Amazon’s Buy-Box. Experimental data reveal that - in the absence of any information provision - more than 80% of the participants do not even inspect other than the Buy-Box (default) deal. Providing participants with (full) information on the Buy-Box functioning and the availability of alternative deals by competing sellers significantly increases the probability of inspecting alternative deals before finalizing the purchase, and the propensity to select a seller other than the one in the default Buy-Box position. At the same time, the average time spent to finalize the purchase is not significantly different.

About this workshop

The Digital Regulation workshop is an online seminar series focused on digital activities and their regulation.

This working group is developing a joint approach in order to establish a reasoned position on digital regulation in the context of current European (and American) initiatives. In particular, it is considering how to implement responsible governance while allowing for innovation. The issue of the effectiveness of public action and how it relates to competitiveness constraints is also central.

If you would like to present, attend, or have any question about seminar, please contact Damien Mayaux (damien.mayaux@dauphine.psl.eu) or Lucas Eustache (lucas.eustache@dauphine.psl.eu)

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