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We introduce an analytical framework close to the canonical model of platform competition investigated by Rochet and Tirole (2006) to study pricing decisions in two-sided markets when two or more platforms are needed simultaneously for the successful completion of a transaction. The model...
Persistent link: https://www.econbiz.de/10008516205
As the network externality in an industrial organization has been widely discussed in recent years, many researchers in the field have noted a particular type of market, the so-called two-sided market. In a two-sided market, two or more groups of agents such as buyers and sellers interact while...
Persistent link: https://www.econbiz.de/10011048687
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/10010984038
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/10008533508
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/10005121200
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/10008471548
leader. The reverse is true below this level. This result holds for both substitutes and complements. …
Persistent link: https://www.econbiz.de/10010729848
monopolists, nesting standard models of perfect complements and imperfect substitutes. I show sufficient conditions for a discrete …
Persistent link: https://www.econbiz.de/10010785025
complementors. We study the interaction between firms in markets with one-way essential complements. One good is essential to the … of surplus between the two goods and the related incentive for firms to create complements to an essential good. Formally …
Persistent link: https://www.econbiz.de/10005762709
A model of interaction between hardware vendors, Intel and AMD, and developers ofWindows and Linux operating systems is suggested. Intel and AMD both maximize profits forming atraditional oligopoly, while Microsoft and the community of Linux developers form a mixedduopoly, in which only the...
Persistent link: https://www.econbiz.de/10008497460