NBER

Ali Makhdoumi

Duke University
100 Fuqua Drive
Durham, NC 27708
United States

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Duke University

NBER Working Papers and Publications

July 2020Testing, Voluntary Social Distancing and the Spread of an Infection
with Daron Acemoglu, Azarakhsh Malekian, Asuman Ozdaglar: w27483
We study the effects of testing policy on voluntary social distancing and the spread of an infection. Agents decide their social activity level, which determines a social network over which the virus spreads. Testing enables the isolation of infected individuals, slowing down the infection. But greater testing also reduces voluntary social distancing or increases social activity, exacerbating the spread of the virus. We show that the effect of testing on infections is non-monotone. This non-monotonicity also implies that the optimal testing policy may leave some of the testing capacity of society unused.
September 2019Too Much Data: Prices and Inefficiencies in Data Markets
with Daron Acemoglu, Azarakhsh Malekian, Asuman Ozdaglar: w26296
When a user shares her data with an online platform, she typically reveals relevant information about other users. We model a data market in the presence of this type of externality in a setup where one or multiple platforms estimate a user’s type with data they acquire from all users and (some) users value their privacy. We demonstrate that the data externalities depress the price of data because once a user’s information is leaked by others, she has less reason to protect her data and privacy. These depressed prices lead to excessive data sharing. We characterize conditions under which shutting down data markets improves (utilitarian) welfare. Competition between platforms does not redress the problem of excessively low price for data and too much data sharing, and may further reduce wel...
November 2017Fast and Slow Learning From Reviews
with Daron Acemoglu, Azarakhsh Malekian, Asuman Ozdaglar: w24046
This paper develops a model of Bayesian learning from online reviews, and investigates the conditions for asymptotic learning of the quality of a product and the speed of learning under different rating systems. A rating system provides information about reviews left by previous customers. A sequence of potential customers decide whether to join the platform. After joining and observing the ratings of the product, and conditional on her ex ante valuation, a customer decides whether to purchase or not. If she purchases, the true quality of the product, her ex ante valuation, an ex post idiosyncratic preference term and the price of the product determine her overall satisfaction. Given the rating system of the platform, she decides to leave a review as a function of her overall satisfaction....

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