Negotiations regularly take place on the business-to-business side of two-sided markets. However, little is known about the consequences of these negotiations on a platform's design, pricing, participation, and welfare. In this paper, we propose a model where platforms choose between the...

Firms in traditional markets often compete in output à la Cournot. In this paper, we consider Cournot competition between platforms in a two-sided market. We find that the markup and markdown terms are distorted toward zero for greater levels of platform competition and for greater levels of...

This book provides an updated overview of the recent progress in the theoretical study of third-degree price discrimination. It is a marketing tactic and is said to be present if the unit price is different across different groups of buyers. Its welfare evaluation is often difficult because it...