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We study optimal experimentation by a monopolistic platform in a two-sided market framework. The platform provider faces uncertainty about the strength of the externality each side is exerting on the other. It maximizes the expected present value of its profit stream in a continuous-time...
Persistent link: https://www.econbiz.de/10009381848
induced platform size and welfare. While vertical integration may be welfare-enhancing if network effects are weak, monopoly …
Persistent link: https://www.econbiz.de/10010370535
Consider a differentiated product market in which all consumers are fully informed about match value and price at the time they make their purchasing decision. Initially, consumers become informed about the prices of all products in the market but do not know the match values. Some consumers...
Persistent link: https://www.econbiz.de/10003965100