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Many differentiated products have key attributes that are unstructured and thus high-dimensional (e.g., design, text). Instead of treating unstructured attributes as unobservables in economic models, quantifying them can be important to answer interesting economic questions. To propose an analytical framework for this type of products, this paper considers one of the simplest design products -- fonts -- and investigates merger and product differentiation using an original dataset from the worlds largest online marketplace for fonts. We quantify font shapes by constructing embeddings from a deep convolutional neural network. Each embedding maps a fonts shape onto a low-dimensional vector. In the resulting product space, designers are assumed to engage in Hotelling-type spatial competition. From the image embeddings, we construct two alternative measures that capture the degree of design differentiation. We then study the causal effects of a merger on the merging firms creative decisions using the constructed measures in a synthetic control method. We find that the merger causes the merging firm to increase the visual variety of font design. Notably, such effects are not captured when using traditional measures for product offerings (e.g., specifications and the number of products) constructed from structured data.
Fonts are ubiquitous across documents and come in a variety of styles. They are either represented in a native vector format or rasterized to produce fixed resolution images. In the first case, the non-standard representation prevents benefiting from
Interpretable brain network models for disease prediction are of great value for the advancement of neuroscience. GNNs are promising to model complicated network data, but they are prone to overfitting and suffer from poor interpretability, which pre
This paper provides an introduction to structural estimation methods for matching markets with transferable utility.
Probabilistic Linear Discriminant Analysis (PLDA) is a popular tool in open-set classification/verification tasks. However, the Gaussian assumption underlying PLDA prevents it from being applied to situations where the data is clearly non-Gaussian. I
Animating a newly designed character using motion capture (mocap) data is a long standing problem in computer animation. A key consideration is the skeletal structure that should correspond to the available mocap data, and the shape deformation in th