This paper analyzes the incentives of a monopolistic matchmaker to generate user-specific information in order to increase match-quality and profits. By merging two-sided-markets with two-sided-matching we derive a micro-foundation of cross-side externalities dependent on the number of potential...

Free-entry Cournot equilibria in pure strategies often fail to exist even within a framework of linear demand and constant marginal costs, if firms can choose from a discrete set of technologies. I show that the non-existence problem vanishes if vertical market size is large. An example...

We introduce technology choice into a model of monopolistic competition and analyze the structural effects of changes in market size. A larger market leads to the adoption of a large-scale technology. If a technology switch occurs, the number of firms decreases, and a rationalizing effect...