consumers we establish see-saws between consumers and advertisers. Entry of a lower-quality platform increases consumer surplus …, but decreases advertiser surplus if industry platform profits decrease with entry. Merger decreases consumer surplus, but …

vertical product differentiation and entry. Both firms face fixed set-up costs and quality-dependent costs of production, and … compete on quality and price. With identical quality-dependent costs, the incumbent will always deter entry if possible, i ….e. if fixed costs are high. Quality will be set at a level lower than the optimal quality set if entry was accommodated. If …

This paper investigates the effects of mergers, entry, and exit in retail markets when input prices are negotiated …