In the spirit of Karl Lagerfeld who once said, “I like the idea of craziness with discipline,” it all started with an assignment from my professor about Google’s cookie and privacy policies. I was supposed to research how cookies influence ad targeting and how collected privacy data is processed, stored and used. But reading about it from all sources wasn’t barely enough for my appetite—so, I turned to something even more exhiliarting:...

Here’s a reallly cool paper. Bergemann et al. (2015) The Limits of Price Discrimination. AER. DOI: http://dx.doi.org/10.1257/aer.20130848 ABSTRACT We analyze the welfare consequences of a monopolist having additional information about consumers’ tastes, beyond the prior distribution; the additional information can be used to charge different prices to different segments of the market, i.e., carry out “third degree price discrimination.” We show that the segmentation and pricing induced by the additional information can achieve every combination of consumer and producer surplus such that: (i) consumer sur- plus is nonnegative, (ii) producer surplus is at least as high as profits under the uniform monopoly price, and (iii) total surplus does not exceed the surplus generated by efficient trade....

Wall Street Journal has its take on Google’s dicey cookie policy. Let’s wait for a while for the dust to fall: Google Is Keeping Cookies in Chrome After All By Patience Haggin and Suzanne Vranica Original new article here. In a major reversal, Google is ending a plan to eliminate cookies in its Chrome browser after four years of efforts, delays and disagreements with the advertising industry. The decision to keep the pervasive tracking technology known as “cookies” in Chrome comes after a series of setbacks, as both digital-advertising companies and regulators objected to the plan and to Google’s proposed replacement technologies....

Taking the premise that there is privacy issue with Cookies—some sacrifice between efficiency and privacy is inevitable. How does the industry react: Browsers: Some browsers take an extreme approach: Safari and Firefox has been blocking Cookies for years. While others are more moderate: Edge doesn’t block 3rd party cookies. Regulator: GDPR (General Data Protection Regulation) initiated in Europe provides comprehensive privacy or data protection reform for not only European residents and European companies, but all companies worldwide that are serving customers in Europe—including consent for users to opt-in using personal Cookie data....

We will focus on Google Chrome to discuss 3rd party cookies’ value in online advertising. Because (i) Cookie and privacy policies vary among browsers, and Chrome is the most popular web-browser (91.56% global share, according 6sense’s report) (ii) Google announced their plan in replacing 3rd party cookies in 2025 (iii) The Ad-exchange industry, whose value largely depends on Cookies, accounts for 10% of Google’s revenue. The Ad-Exchange Industry Structure Publishers like the NY Times attract readers and sell ad space to third-party ad exchanges, which collect user information through cookies and sell it to advertisers....

In April 2024, Google announced the complete phase-out of third-party cookies by 2025, marking a significant shift in the digital landscape (timeline). This technical report explores the role of third-party cookies in the online advertising market, their inherent value, and the ongoing industry changes. Section 1 | What are Cookies? Definition: Cookies are small text files that hold a modest amount of data specific to a particular user and website. It is stored locally on a user’s computer....

Let’s take a musical detour. Ariana Grande’s “No Tears Left to Cry” isn’t just a pop hit; it’s a message of healing and care, mirroring the core of her album Sweetener. Directed by Dave Meyers, one of the industry’s top music video directors, the song’s visuals are as uplifting as its lyrics. So, as Ariana says, “pickin’ it up”—join me in a brief musical escape from the daily grind of books, papers, and assignments, and keep writing…...

In tomorrow’s post, we’re diving into the world of cookies—not the one to have with coffee though! Cookies play a huge role in the digital advertisement market landscape. So, tune in to discover what’s really happening behind the scenes when a website tells you, “We use cookies!” It’s going to be a fun and informative ride. Don’t miss out!

Back in February, I picked Sabrina Carpenter as a next big thing in music on my blog: see post the IDGAS energy in Sabrina Carpenter’s ‘Nonsense’. Now, she’s topping the charts with her album Short n Sweet and its hit singles. You can see for yourself on the Billboard Hot 100. told you so It’s exciting to see a prediction come true, especially when it’s about an artist as talented as Sabrina....

In familiar terms, think of market designer as the engineer behind intricate market systems. We design Tinder’s two-sided dating market that match you with your next ‘swipe’, or, Google’s ads market that decides which ads to recommend to you in your next search. And here is the contribution of market designers that I’m most proud of—as a member of the community—kidney exchange. Kidney disease is one of the top 10 causes of death in the US and around the world....