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This paper studies pricing decisions in two-sided markets when platforms are needed simultaneously for the successful completion of a transaction. The model is a natural extension of the Cournot-Ellet theory of complementary monopoly featuring clear cut asymmetric single- and multihoming...
Persistent link: https://www.econbiz.de/10012709260
correlated. I show that the standard "one-sided" model of complements is a special case of the two-sided model, and that it … generates those same hallmark features of two-sided markets. The model of complements also performs well in predicting price … common outcome in two-sided markets. The main cost to using a model of complements to estimate cross-group effects in a two …
Persistent link: https://www.econbiz.de/10011789113
This paper analyses a two-sided market in which two platforms compete against each other. One side, the advertisers, exerts a negative externality on the ther side, the users. It is shown that if platforms can charge advertisers only, a higher degree of competition for users can lead to higher...
Persistent link: https://www.econbiz.de/10010440462
worse than those generated by a monopoly (with a vertically integrated production of complements), a problem known in the … related question of how many complements need to be substitutable and offer comments on equilibrium prices and quantities …
Persistent link: https://www.econbiz.de/10014062412
An integrated monopoly, where all complements forming a composite good are offered by a single firm, is typically … competition in the market for each complement. We present a model with two perfect complements and introduce n imperfect … substitutes for one and then for both complements. We prove that, if one complementary good is produced by a monopolist, and if …
Persistent link: https://www.econbiz.de/10011737904
Italian Abstract: In questo lavoro vengono esposti in sintesi i principali risultati relativi all'introduzione degli effetti rete nelle preferenze dei consumatori e le implicazioni di questi sulla dominanza di uno standard o la coesistenza di più standards. Gli storici risultati di Rohlfs...
Persistent link: https://www.econbiz.de/10014145661
We examine two episodes of strategic interaction in the U.K. betting industry: (i) Betfair (an entrant multi-sided platform, or MSP) vs. Flutter (also an MSP), and (ii) Betfair vs. traditional bookmakers. We find that although Betfair was an underfunded second mover in the betting exchange...
Persistent link: https://www.econbiz.de/10012019905
We study the welfare effects of a merger between ad-funded platforms facing elastic consumer demand. We show that advertising fees as well as quality investment levels by the platforms fall post-merger. Interestingly, despite the lower advertising fees, advertisers may be worse off when their...
Persistent link: https://www.econbiz.de/10015339857
We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of the market. We then use an original dataset on the Italian...
Persistent link: https://www.econbiz.de/10012607419
We study how digital platforms can choose competitive strategies to influence the number of multihoming consumers. Platforms compete for consumers and advertisers. A platform earns a premium from advertising to singlehomers, as it is a gatekeeper to these consumers. Competitive strategies...
Persistent link: https://www.econbiz.de/10012586398