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It is crucial for content providers (CPs) to appear prominently on dominant online platforms in order to attract consumer demand. Platforms often offer content providers prominence in return for a monetary compensation (e.g., a sponsored listing). We consider the case where CPs can pay the...
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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...
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Soziale Netzwerke, Suchmaschinen und der Online-Handel zeichnen sich auf den ersten Blick dadurch aus, dass hier sehr große Unternehmen den Markt beherrschen. Ob dies aber zu Wettbewerbsbeschränkungen führt, wie digitale Märkte sinnvoll abzugrenzen und wie faire Marktbedingungen herzustellen...
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In this paper, we examine how the introduction of network externalities impact an open and vertically integrated platform's post-merger contractual relationship with third-party sellers distributing through its marketplace. Regardless of whether the platform uses linear contracts or two-part...
Persistent link: https://www.econbiz.de/10013427687
We study the GDPR's opt-in requirement in a model with a firm that provides a digital service and consumers who are heterogeneous in their valuations of the firm's service as well as the privacy costs incurred when sharing personal data with the firm. We show that the GDPR boosts demand for the...
Persistent link: https://www.econbiz.de/10014377591
We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on...
Persistent link: https://www.econbiz.de/10014377592