Essays in applied microeconomics

This thesis investigates the interplay between algorithms, market entry, and bundling practices within digital marketplaces, using Amazon as a central case study. It leverages innovation from machine-learning both as the object of study and as a tool to extract insights in the world of e-commerce. Combined, these papers shed light on how digital platforms and their algorithms impact market dynamics, competition, and regulatory concerns. The first paper, Algorithms in the Wild: Experimental Evidence from an Online Marketplace, explores the potential for algorithmic collusion in online marketplaces. The second paper, Competition on Hybrid Platforms: Evidence from Amazon US, provides a detailed analysis of Amazon’s dual role as both a marketplace and a competitor. Finally, Bundling Services in Digital Markets: FTC vs Amazon Inc. investigates Amazon's logistics practices, particularly the tying of its Fulfillment by Amazon (FBA) service with access to its marketplace’s most valuable customer segment, Prime members.