Showing 1 - 10 of 14,246
This paper studies an industry in which firms can choose to provide open or closed platforms. Open platforms, as … model, I show that firms might prefer to commit to keeping their platforms closed despite the fact that opening the platform … is costless and open platforms are more valuable to consumers. The reason is that opening the platform may lead to …
Persistent link: https://www.econbiz.de/10010320284
Private firms may not have efficient incentives to allow third-party producers to access their platform or develop extensions for their products. Based on a two-sided market model, I discuss two reasons for why. First, a private firm may not be able to internalize all benefits from cross-group...
Persistent link: https://www.econbiz.de/10010320391
This paper empirically examines the effects of discriminatory fees on ATM investment and welfare, and considers the role of coordination in ATM investment between banks. Our main findings are that foreign fees tend to reduce ATM availability and (consumer) welfare, whereas surcharges positively...
Persistent link: https://www.econbiz.de/10011506704
emergence of new business models. The increasing roles of digital platforms as well as data-driven markets represent two …
Persistent link: https://www.econbiz.de/10011927073
Media firms sometimes allow consumers to pay to remove advertisements from an advertisement-based product. We formally examine an ad-based monopolist's incentives to introduce this option. When deciding whether to introduce the option to pay, the monopolist compares the potential direct revenues...
Persistent link: https://www.econbiz.de/10010320416
The TV industry is a two-sided market where both advertisers and viewers buy access to the programs offered by competing TV channels. Under the current market structure advertising prices are typically set by TV channels while viewer prices are set by distributors (e.g. cable operators). The...
Persistent link: https://www.econbiz.de/10010270473
We discuss the benefits of net neutrality regulation in the context of a two-sided market model in which platforms sell … surplus compared to duopoly competition between platforms that charge positive fees on content providers. We also discuss the …
Persistent link: https://www.econbiz.de/10010320106
This paper analyses the quality provision of interrelated market firms under different market structures both theoretically and empirically.A theoretical model is built,where a media firm offers newspapers in a primary market and advertising space in the secondary market.Furthermore,the media...
Persistent link: https://www.econbiz.de/10010263395
Why do so many high-priced acquisitions of entrepreneurial firms take place in network industries? We develop a theory of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by the incumbents' desire to prevent rivals from acquiring...
Persistent link: https://www.econbiz.de/10010320239
We challenge the dichotomy of network effects and highlight that they are not an exogenous characteristic of networks, but endogenous to the decisions of network users. When users choose which activities to perform in a network, multi-activity users transform indirect into direct network...
Persistent link: https://www.econbiz.de/10013470340