This paper develops a model in which market structure is determined endogenously by the choice of intermediation mode …. We consider two representative business modes of intermediation that are widely used in real-life markets: one is a … other. In our model, buyers and sellers can simultaneously search in an outside market and use the intermediation service …

typically noisy. Also, the market for information tends to be a monopoly, and there is typically inefficiency given by …

crowds out local variety. Under local monopoly, local buyer surplus co-moves with external buyer surplus. Under local free … surplus is better provided by local monopoly. …