We consider platform competition in a two-sided market, where the two sides (buyers and sellers) have ex-ante uncertainty and ex- post asymmetric information concerning the value of a new tech- nology. We find that platform competition may lead to a market failure: competition may result in a...

We consider platform competition in a two-sided market, where the two sides (buyers and sellers) have ex-ante uncertainty and ex-post asymmetric information concerning the value of a new technology. We find that platform competition may lead to a market failure: competition may result in a lower...

We examine the behavior of senders and receivers in the context of oligopoly limit pricing experiments in which high prices chosen by two privately informed incumbents may signal to a potential entrant that the industry-wide costs are high and that entry is unprofitable. The results provide...

The paper considers an infinitely repeated competition between vertical manufacturer-retailer hierarchies. In every period, retailers privately observe the demand, consequently manufacturers pay retailers “information rents”. I compare between several collusive equilibria that differ in the...