A Details of the empirical setup in Section 3.4

Our model is one of the simplest possible that studies specialization in the supply-side marketplace. First, the infinite, high-dimensional content embedding space captures that digital goods can't be cleanly clustered into categories, but rather, are often mixtures of different dimensions (e.g. a movie can be both a drama and a comedy). See Anderson et al. [ 1992 ] for a textbook treatment. The assumption that all producers share the same cost function is also simplifying, but, potentially surprisingly, still allows us to study specialization. Proposition 4. F or any set of users and any 1, a pure strategy equilibrium does not exist.