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We consider dynamic competition among platforms in a market with network externalities. A platform that dominated the … the focal platform whenever such equilibrium exists. Yet when faced with higher-quality competition, can a low …
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We study monopoly and duopoly pricing in a two-sided market with dispersed information about users' preferences. We first show how the dispersion of information introduces idiosyncratic uncertainty about participation rates and how the latter shapes the elasticity of the demands and thereby the...
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