Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Shapes as Product Differentiation: Neural Network Embedding in the
  Analysis of Markets for Fonts   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 world's largest online marketplace for
fonts. We quantify font shapes by constructing embeddings from a deep
convolutional neural network. Each embedding maps a font's 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
firm's 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.

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The categories of this paper are: q-bio
16
The categories of this paper are: stat
9
The categories of this paper are: nlin
31
The categories of this paper are: ao-sci
14
The categories of this paper are: math-ph
24
The categories of this paper are: dg-ga
37
The categories of this paper are: supr-con
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The categories of this paper are: alg-geom
34
The categories of this paper are: chem-ph
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The categories of this paper are: eess
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The categories of this paper are: hep-lat
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The categories of this paper are: q-fin
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The categories of this paper are: quant-ph
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The categories of this paper are: plasm-ph
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The categories of this paper are: physics
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The categories of this paper are: patt-sol