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We compare a discriminatory pricing regime with a non-discriminatory regime in a competitive bottleneck model where content providers endogenously sort into single or multi-homers. We find that consumer prices rise when the share of single-homers increases in the non-discriminatory case, while...
Persistent link: https://www.econbiz.de/10011630878
sellers shape the market structure in platform industries. If product market competition is tough, sellers avoid competitors … markets, several homogeneous platforms segment the market. Instead, if product market competition is soft, agglomeration on a … competition. …
Persistent link: https://www.econbiz.de/10011798855
are heterogeneous in their costs of bringing apps to the platform. We consider competition between two homogeneous …
Persistent link: https://www.econbiz.de/10010426537
gatekeeper to these consumers. Competitive strategies leading to intense competition on the consumer side reduce profits on that …
Persistent link: https://www.econbiz.de/10012586398
Does competition promote efficient platform pricing and market structures? We model imperfect platform competition … competition's impact on efficiency depends crucially on heterogeneity in users' valuations for network effects. The standard Flat … consequences of competition in calibrated models of the video game and newspaper industries.The appendices for this paper are …
Persistent link: https://www.econbiz.de/10013008781
business model, and competition, result in the platform allowing one type of customers to participate in the platform for free … by the participants on the platform as well as have heightened focus on non-price competition when the participation for … concern a free platform side where there is no monetary measure of value. Finally, dynamic competition makes the analysis of …
Persistent link: https://www.econbiz.de/10014128700
This article studies competition between different types of ad-funded platforms attracting consumers with free services … that studies competition between standard platforms and social media platforms (with same-side network effects). We find …) externality on each other, competition fails to protect consumer welfare and behaves erratically. Finally, we present a few …
Persistent link: https://www.econbiz.de/10012838308
prices and features of goods without incurring search costs. The platform alleviates sellers' competition by charging them …
Persistent link: https://www.econbiz.de/10012945113
This paper studies asymmetric platforms' incentives for enforcing exclusivity on multihoming sellers. We show that exclusivity benefits a platform only when its service is not very valuable to sellers, and hence can be initiated by a weak platform rather than the stronger one. It is possible for...
Persistent link: https://www.econbiz.de/10014082628
We examine two episodes of strategic interaction in the U.K. betting industry: (i) Betfair (an entrant multi-sided platform, or MSP) vs. Flutter (also an MSP), and (ii) Betfair vs. traditional bookmakers. We find that although Betfair was an underfunded second mover in the betting exchange...
Persistent link: https://www.econbiz.de/10012019905