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This study explores the welfare impact of personalized pricing for consumers in a duopolistic two-sided market, with …, which is private in nature, cannot influence expectations regarding the network sizes, inducing the platforms to offer lower …
Persistent link: https://www.econbiz.de/10014490912
We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We … limited than under full attention. Consumer surplus and welfare are not maximized under full attention but increase for some …
Persistent link: https://www.econbiz.de/10011963815
We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We … limited than under full attention. Consumer surplus and welfare are not maximized under full attention but increase for some …
Persistent link: https://www.econbiz.de/10012287658
We analyze duopoly Bertrand competition under network effects. We consider both incompatible and compatible products …. Our main result is that network effects create a fundamental conflict between the maximization of social welfare and … welfare is highest in the asymmetric equilibrium. We also show that both consumer surplus and social welfare are higher in any …
Persistent link: https://www.econbiz.de/10014217962
We propose a general framework for consumer demand in two-sided markets, modelling the way externalities between customer groups affect the price sensitivity of demand on both sides of the market. We define a measure for the strength of the externalities and establish the conditions for the...
Persistent link: https://www.econbiz.de/10012871171
Using a model of sequential search, we show that announcements to price-match raise prices by altering consumer search behavior. First, price-matching diminishes firms' incentives to lower prices to attract consumers who have no search costs. Second, for consumers with positive search costs,...
Persistent link: https://www.econbiz.de/10013008776
situations where the protection of a monopolist against entrants is a welfare maximizing policy. The introduction of more firms …
Persistent link: https://www.econbiz.de/10013156472
applies more generally to duopoly pricing. …
Persistent link: https://www.econbiz.de/10010273874
Persistent link: https://www.econbiz.de/10014082002
This chapter focuses on the economic mechanisms at work in recent models of advertising finance in media markets developed around the concept of two-sided markets. The objective is to highlight new and original insights from this approach, and to clarify the conceptual aspects. The chapter first...
Persistent link: https://www.econbiz.de/10014025251