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We introduce an analytical framework close to the canonical model of platfirm competition investigated by Rochet and Tirole (2006) to study pricing decisions in two-sided markets when two or more platfirms are needed simultaneously for the successful completion of a transaction. The model...
Persistent link: https://www.econbiz.de/10010313416
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/10011794196
This thesis strives to offer new insights in two main areas. First, in the well-researched domain of payment cards chapters 2 and 3 investigate an aspect that has hitherto been scantly examined, namely, the fact that merchant usage fees differ substantially among merchant sectors. Additionally,...
Persistent link: https://www.econbiz.de/10010309017
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/10010427391
We analyze competition between two platforms with positive network externalities. Platforms can choose to interconnect or alternatively, operate exclusively. We examine how this decision will affect pricing behaviour and incentives to invest in Platform quality. We find that interconnection is...
Persistent link: https://www.econbiz.de/10010299147
We present the idea that quality cooperation and standardisation might raise network providers' incentives for product differentiation. As a result, the equilibrium outcome may be characterised by voluntary standardisation and maximum quality differentiation: This situation arises, if platforms...
Persistent link: https://www.econbiz.de/10010270111
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/10011651602
This paper analyzes pricing decisions and competition in network markets, assuming that groups of consumers can coordinate their choices when it is in their interest, if coordination does not require communication. It is shown that multiple asymmetric networks can coexist in equilibrium. A...
Persistent link: https://www.econbiz.de/10010494335
Many countries levy reduced-rate indirect taxes on newspapers, with proclaimed policy goals of stimulating investment in journalism and ensuring low newspaper prices. However, by taking into account the fact that the media industry operates in two-sided markets, we find the paradoxical result...
Persistent link: https://www.econbiz.de/10010278875
The existing literature on two-sided markets addresses participation externalities, but so far it has neglected pecuniary externalities between competing platforms. In this paper we build a model that incorporates both externalities. In our setup differentiated platforms compete in advertising...
Persistent link: https://www.econbiz.de/10010333917