The authors thank the corporate sponsor for making the data available for this project. The authors are particularly grateful to Hannes Ullrich, three anonymous referees, the department editor, and the associate editor for very helpful comments. The authors also thank audiences at the University of Vienna, the 2018 CESifo Network Conference on the Economics of Digitization, and the 2019 Industrial Organization Ausschuss for comments. William Burton provided excellent research assistance. The computational results presented have been computed in part by using the Vienna Scientific Cluster.