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We study an endogenous growth model where a profit-motivated R and D sector coexists with the introduction of free blueprints invented by philanthropists. These goods are priced at marginal cost, contrary to proprietary ones which are produced by a monopoly owned by the inventor. We show that...
Persistent link: https://www.econbiz.de/10011409970
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/10011789113
"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/10012801572
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 the...
Persistent link: https://www.econbiz.de/10011977111
We consider the effects of taxes for competing two-sided platforms. We first detail how a platform passes a tax increase on its prices. Adding price competition, we study next how the tax affects profits. Because of the strategic implications of the cross-side external effects, the tax increase...
Persistent link: https://www.econbiz.de/10011459129
We analyze competition between data intermediaries collecting information on consumers, which they sell to firms for price discrimination purposes. We show that competition between data intermediaries benefits consumers by increasing competition between firms, and by reducing the amount of...
Persistent link: https://www.econbiz.de/10012628762
The unprecedented access of firms to consumer level data not only facilitates more precisely targeted individual pricing but also alters firms' strategic incentives. We show that exclusive access to a list of consumers can provide incentives for a firm to endogenously assume the price leader's...
Persistent link: https://www.econbiz.de/10012104125
This article studies incentives for a premium provider (Superstar) to offer exclusive contracts to competing platforms mediating the interactions between consumers and firms. When platform competition is intense, more consumers subscribe to the platform hosting the Superstar exclusively. This...
Persistent link: https://www.econbiz.de/10011982399
We propose an analysis of platform competition based on the academic literature with a view towards competition policy. First, we discuss to which extent competition can emerge in digital markets and show which forms it can take. In particular, we underline the role of dynamics, but also of...
Persistent link: https://www.econbiz.de/10012258099
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/10013384891