Copyright and Competition: Estimating Supply and Demand with Unstructured Data

Copyright policies play a pivotal role in protecting the intellectual property of creators and companies in creative industries. The advent of cost-reducing technologies, such as generative AI, in these industries calls for renewed attention to the role of these policies. This paper studies product positioning and competition in a market of creatively differentiated products and the competitive and welfare effects of copyright protection. A common feature of products with creative elements is that their key attributes (e.g., images and text) are unstructured and thus high-dimensional. We focus on a stylized design product, fonts, and use data from the world's largest online marketplace for fonts. We use neural network embeddings to quantify unstructured attributes and measure the visual similarity. We show that this measure closely aligns with actual human perception. Based on this measure, we empirically find that competitions occur locally in the visual characteristics space. We then develop a structural model for supply and demand that integrate the embeddings. Through counterfactual analyses, we find that local copyright protection can enhance consumer welfare when products are relocated, and the interplay between copyright and cost-reducing technologies is essential in determining an optimal policy for social welfare. We believe that the embedding analysis and empirical models introduced in this paper can be applicable to a range of industries where unstructured data captures essential features of products and markets.

Understanding the Stability of Deep Control Policies for Biped Locomotion

Achieving stability and robustness is the primary goal of biped locomotion control. Recently, deep reinforce learning (DRL) has attracted great attention as a general methodology for constructing biped control policies and demonstrated significant improvements over the previous state-of-the-art. Although deep control policies have advantages over previous controller design approaches, many questions remain unanswered. Are deep control policies as robust as human walking? Does simulated walking use similar strategies as human walking to maintain balance? Does a particular gait pattern similarly affect human and simulated walking? What do deep policies learn to achieve improved gait stability? The goal of this study is to answer these questions by evaluating the push-recovery stability of deep policies compared to human subjects and a previous feedback controller. We also conducted experiments to evaluate the effectiveness of variants of DRL algorithms.