This paper explains why platforms such as Amazon and Visa rely predominantly on ad-valorem fees, fees which increase proportionally with transaction prices. It also provides a new explanation for why ad-valorem sales taxes are more desirable than specific taxes. The theory rests on the ability...

This paper examines optimal managerial decisions in markets where goods may be distributed directly by their producers and/or by an intermediary akin to an online platform. We characterize the optimal design of the platforms' trading strategy, under two distinct business models: a marketplace...

This paper investigates a puzzle and possible policy concern: Why do platforms such as eBay and Visa that enable the trade of goods of different unobserved costs and valuations rely predominantly on linear ad-valorem fees, that is, fees that increase in proportion to the sale price of the trades...

In December 2020, new regulation of digital markets was proposed by European Commission. It specifically addresses main concerns raised by business behavior of operators of core services in their gatekeeping positions. However, voice assistants (or digital personal assistants, DPAs, e.g. Apple's...

We study competition among market designers who create new trading platforms, when boundedly rational traders learn to select among them. We ask whether efficient platforms, leading to market - clearing trading outcomes, will dominate the market in the long run. If several market designers are...

In this paper, we empirically study how flagship entry in an online marketplaceaffects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by...

Der vorliegende Beitrag erörtert die wichtigsten Herausforderungen, die sich durch die Digitalisierung stellen. Analysiert werden die Fragen, inwiefern die die Digitalisierung zu einer Monopolisierung von Märkten führt, wie das Kartellrecht nach der 9. GWBNovelle diese Befürchtungen...

There can be no doubt that the FANG companies – Facebook, Amazon, Netflix and Google, as well as Twitter – have transformed society since their emergence. Like all social transformations, the changes wrought by their services have had ripple effects that are both positive and negative. On...

Plug and Play – The Era of Technology Convergence.Emergences of new technologies like Mobile, Cloud and robust payment gateways have enhanced the business models of e-commerce applications. Google pioneered the advertisement based revenue model. Amazon gave a whole new dimension to e-business...

This paper studies the effect of market structure on the diffusion of e-commerce technologies. These include self-serve electronic check-in/-out kiosks, online retail outlets, online customer-service centers, and e-banking, which reduce costs for firms relative to their old, non-electronic...