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invest in Platform quality. We find that interconnection is aa means to reduce externalities one side exerts on the other. It … changes the mode of competition for subscribers and resultsin higher subscription prices. Further, even though interconnection … quality costs it will lead to asymmetric networks. Therefore, interconnection without coordinated investment activities is …
Persistent link: https://www.econbiz.de/10003797957
This paper examines how quality incentives are related to the interoperability of competing platforms. Platforms choose whether to operate standardised or exclusively, prior to quality and subsequent price competition. We find that platforms choose a common standard if they can coordinate their...
Persistent link: https://www.econbiz.de/10003848849
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/10010440462
In markets that exhibit network effects, the presence of digital conversion technologies provides an alternative mechanism to achieve compatibility. This study examines the impact of conversion technologies on market equilibrium in the context of sequential duopoly competition and proprietary...
Persistent link: https://www.econbiz.de/10014051431
This paper analyzes exclusionary conduct of platforms in two-sided markets. Motivated by recent antitrust cases against shopping centers introducing radius restrictions on their tenants, we provide a discussion of the likely positive and normative effects of exclusivity clauses, which prevent...
Persistent link: https://www.econbiz.de/10011283647
Digital platforms operate in multisided markets providing services through the internet to two or more distinct groups of users, between which there are indirect network effects. Direct network effects are frequently present within each group. Therefore, online platforms usually present both...
Persistent link: https://www.econbiz.de/10012949267
Negotiations regularly take place on the business-to-business side of two-sided markets. However, little is known about the consequences of these negotiations on a platform's design, pricing, participation, and welfare. In this paper, we propose a model where platforms choose between the...
Persistent link: https://www.econbiz.de/10012849213
The presence of multiple sellers in the provision of (non-substitutable) complementary goods leads to outcomes that are worse than those generated by an integrated monopoly, a problem also known as "tragedy of the anticommons". In this paper we identify some conditions under which the tragedy is...
Persistent link: https://www.econbiz.de/10014212971
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
This paper examines how quality incentives are related to the interoperability of competing platforms. Platforms choose whether to operate standardised or exclusively, prior to quality and subsequent price competition. We find that platforms choose a common standard if they can coordinate their...
Persistent link: https://www.econbiz.de/10010333982