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Our study extends the empirical literature on whether vertical restraints are anticompetitive. We focus on exclusive contracting in platform markets, which feature indirect network effects and thus are susceptible to applications barriers to entry. Theory suggests that exclusive contracts in...
Persistent link: https://www.econbiz.de/10014047965
We develop a model of dynamic platform formation under positive platform externalities. Users can switch between an incumbent and entrant platforms, switching opportunities arise stochastically and users can choose whether to accept or reject an opportunity to switch. For homogeneous users, we...
Persistent link: https://www.econbiz.de/10012856921
Online platforms, such as Google, Facebook, or Amazon, are constantly expanding their activities, while increasing the overlap in their service offering. In this paper, we study the scope and overlap of online platforms' activities, when they are endogenously determined. We model an expansion...
Persistent link: https://www.econbiz.de/10013074993
This paper studies a “market creating” firm that offers a matching environment, by charging an access fee, to a population of users who wish to form a match. We focus on an environment where users only observe a signal from their randomly assigned partner's type and the signal...
Persistent link: https://www.econbiz.de/10013118585
This paper studies a 'market creating' firm (platform) that offers a matching environment by charging an access fee to a population of high and low type users who wish to form a match. We focus on an environment where users only observe a signal of their randomly assigned partner's type and...
Persistent link: https://www.econbiz.de/10013118824
Online rating systems can lead, on occasion, to reviews that are unfair or un-representative of the true quality provided. On the one hand, receiving an unfairly low rating once, might induce someone a platform supplier to exert more effort and receive a better rating the next time. On the other...
Persistent link: https://www.econbiz.de/10012944680
Consumers rely on platforms to access goods and services in many industries. Platform firms are often integrated, including their own goods in the menu of products offered to consumers. With the ability to impact both pricing and product assortment, these integrated firms face a trade-off...
Persistent link: https://www.econbiz.de/10012861341
We consider platform competition in the presence of small users and a usergroup. One platform enjoys a quality advantage and the other benefits from favorable beliefs. We study whether the group mitigates the users' coordination problem i.e., joining a low-quality platform because they believe...
Persistent link: https://www.econbiz.de/10012861345
Many products sold on online platforms have additional features. Platforms can deliberately shroud these features from consumers, e.g. by revealing them only late in the purchase process. For example, platforms often reveal shipping- and handling fees, or upgrades like luggage or hotel services...
Persistent link: https://www.econbiz.de/10013227315
We study the effects of competition and interoperabilty in platform markets. To do so, we adopt an approach of competition in net fees, which is well-suited to situations where users pay additional charges, after joining, for on-platform interactions. Compared to other approaches, net fees...
Persistent link: https://www.econbiz.de/10013323426