We examine the profitability and the welfare implications of pricediscrimination in two-sided markets. Platforms have information aboutthe preferences of the agents that allows them to price discriminatewithin each group. The conventional wisdom from one-sided horizontallydifferentiated markets...

This paper develops techniques to analyze the adoption decisions of bothconsumers and firms for competing platform intermediaries in two-sidedmarkets, and applies the methodology to empirically measure the impactof vertical integration and exclusive contracting in thesixth-generation of the U.S....

This paper analyzes the effects of net neutrality regulation oninvestment incentives for Internet service providers (ISPs) and contentproviders (CPs), and their implications for social welfare. We show thatthe ISP s decision on the introduction of discrimination across contentdepends on a...

I discuss the design and implementation of a SSNIP test in order toidentify the relevant market in a media market. I argue that in such atwo-sided market the traditional SSNIP test cannot be applied as it isusually conceived but rather should be modified in order to take intoaccount indirect...

We propose a general model of imperfect competition among multi-productfirms, the consumption of whose goods yields externalities from oneconsumer to another. We extend the allocation approach of Weyl (2010)'smonopoly model, proposing a solution concept, Insulated Equilibrium,that allows for...

Should a new ``platform'' target a functionality-rich but complex andexpensive design or instead opt for a bare-bone but cheaper one? This is afundamental question with profound implications for the eventual success ofany platform. A general answer is, however, elusive as it involves a...

We extend the traditional literature on bundling and the burgeoning literature on two-sided markets by presenting a theoretical monopoly model of mixed bundling in the context of the portable video game console market--a prototypical two-sided market. It is shown that the monopoly platform's...

We find sale prices and net revenues received by sellers in the Midwestern club pig market are higher at traditional face-to-face auctions than at comparable Internet auctions. The comparison overcomes adverse selection issues that commonly plague such analyses by using data from sellers that...