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Private provision of a complementary public good

Schmidtke, Richard - 2006

For several years, an increasing number of firms have been investing in Open Source Software (OSS). While improvements in such a non-excludable public good cannot be appropriated, companies can benefit indirectly in a complementary proprietary segment. We study this incentive for investment in...

Persistent link: https://www.econbiz.de/10010263943

One-sided private provision of public goods with implicit Lindahl pricing

Meier, Volker - 2010

We consider a sequential game in which one player produces a public good and the other player can influence this decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two (implicit) individual prices has to be equal to the resource...

Persistent link: https://www.econbiz.de/10010274724

Prediction and Identification in Two-Sided Markets

Boik, Andre - 2018

correlated. I show that the standard “one-sided” model of complements is a special case of the two-sided model, and that it … generates those same hallmark features of two-sided markets. The model of complements also performs well in predicting price … common outcome in two-sided markets. The main cost to using a model of complements to estimate cross-group effects in a two …

Persistent link: https://www.econbiz.de/10011794196

Doubling Back on Double Marginalization

Linnemer, Laurent - 2022

"Double marginalization" and "Elimination of Double marginalization" are catch-phrases commonly used in the IO literature. In this note, I trace back the origin of the idea to Chapter IX, on complementary goods monopolies, of Cournot (1838). Through the years Cournot's contribution remained a...

Persistent link: https://www.econbiz.de/10013177565

Platform Liability and Innovation

Jeon, Doh-Shin; Lefouili, Yassine; Madio, Leonardo - 2022

We study a platformâs incentives to delist IP-infringing products and the effects of holding the platform liable for the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability increases innovation by reducing the competitive pressure faced...

Persistent link: https://www.econbiz.de/10013427770

Self-Preferencing, Quality Provision, and Welfare in Mobile Application Markets

Teng, Xuan - 2022

Platforms may give preferential treatment to their own products in search results. Whether and how to regulate this self-preferencing behavior is an intensely debated antitrust issue. This paper identifies self-preferencing and quantifies its equilibrium welfare effects in Apple App Store. I...

Persistent link: https://www.econbiz.de/10013470301

Interoperability between Ad-Financed Platforms with Endogenous Multi-Homing

Bourreau, Marc; Raizonville, Adrien; Thébaudin, Guillaume - 2023

Platform interoperability is considered a powerful tool to promote competition in digital markets when network effects are at play. We study the effect of interoperability on competition between two ad-financed platforms, allowing for endogenous multi-homing of consumers. When the platforms are...

Persistent link: https://www.econbiz.de/10014290242

Prices and Mergers in a General Model of Multi-Sided Markets

Bajo-Buenestado, Raúl; Kinateder, Markus - 2023

We present a general and tractable oligopoly model of multi-sided platforms with endogenous side and platform choices of heterogeneous end-users, considering any mix of single-homing and multi-homing platforms and in which participating on one side could preclude doing so on others. We show the...

Persistent link: https://www.econbiz.de/10014469612

Piracy and competition

Belleflamme, Paul; Picard, Pierre M. - 2004

The effects of (private, small-scale) piracy on the pricing behavior of producers of information goods are studied within a unified model of vertical differentiation. Although information goods are assumed to be perfectly horizontally differentiated, demands are interdependent because the...

Persistent link: https://www.econbiz.de/10010261097

Data brokers co-opetition

Gu, Yiquan; Madio, Leonardo; Reggiani, Carlo - 2019

Data brokers collect, manage, and sell customer data. We propose a simple model, in which data brokers sell data to downstream firms. We characterise the optimal strategy of data brokers and highlight the role played by the data structure for co-opetition. If data are “sub-additive”, with...

Persistent link: https://www.econbiz.de/10012018214