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sustainability of collusion in an infinitely repeated game framework. We show that the bundling strategy of the entrant might hinder … collusion. Futhermore, we consider a setting in which the entrant uses a one-way access that the incumbent possesses. In such … might increase the feasibility of collusion. This result has an important policy implication. …
Persistent link: https://www.econbiz.de/10005184810
The literature on information aggregation predicts that market growth unambiguously reduces uncertainty about the value of traded goods. The results were developed within the classical model, which assumes that traders’ values for the exchanged good are determined by fundamental (common)...
Persistent link: https://www.econbiz.de/10010905451
The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model...
Persistent link: https://www.econbiz.de/10010905457
In this paper, we study how the presence of a news aggregator affects competition among (horizontally differentiated) newspapers in the Internet. For this purpose, we build a model of multiple issues which allows each newspaper to choose quality on each issue. Our model provides a micro...
Persistent link: https://www.econbiz.de/10010905459
In this article I analyze the effects of a recent reform intended to decrease switching costs in the cellular industry. The reform, implemented in Chile in 2012, allowed cell phone users to switch operators without any contract restriction while keeping their wireless number. Its aim was the...
Persistent link: https://www.econbiz.de/10010905460
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers, might impose download limits on content consumers: doing so increases the degree to which those consumers view content providers’ products as substitutes. This, in turn, intensifies the...
Persistent link: https://www.econbiz.de/10010905461
As online information availability for products and services is increasing and as buyers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce buyer uncertainty. This article argues that today's firms should view...
Persistent link: https://www.econbiz.de/10010905465
This paper investigates how switching costs affect product compatibility and market dynamics in network industries. A reduction in the switching cost makes the firms' products more attractive relative to the outside good, which diminishes the market expansion benefit of making products...
Persistent link: https://www.econbiz.de/10010905466
Online platforms, such as Google, Facebook, or Amazon, are constantly expanding their activities, while increasing the overlap in their service offering. In this paper, we study the scope and overlap of online platforms' activities, when they are endogenously determined. We model an expansion...
Persistent link: https://www.econbiz.de/10010905475
We compare four approaches to network neutrality and network management regulation in a two-sided market model: (i) no variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination; (iii) variations in Quality of Service and price...
Persistent link: https://www.econbiz.de/10010905480