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We introduce an analytical framework close to the canonical model of platfirm competition investigated by Rochet and Tirole (2006) to study pricing decisions in two-sided markets when two or more platfirms are needed simultaneously for the successful completion of a transaction. The model...
Persistent link: https://www.econbiz.de/10010313416
This paper studies pricing decisions in two-sided markets when platforms are needed simultaneously for the successful completion of a transaction. The model is a natural extension of the Cournot-Ellet theory of complementary monopoly featuring clear cut asymmetric single- and multihoming...
Persistent link: https://www.econbiz.de/10012709260
correlated. I show that the standard "one-sided" model of complements is a special case of the two-sided model, and that it … generates those same hallmark features of two-sided markets. The model of complements also performs well in predicting price … common outcome in two-sided markets. The main cost to using a model of complements to estimate cross-group effects in a two …
Persistent link: https://www.econbiz.de/10011789113
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
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/10011737904
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
We discuss the benefits of net neutrality regulation in the context of a two-sided market model in which platforms sell Internet access services to consumers and may set fees to content and applications providers on the other side of the Internet. When access is monopolized, we find that...
Persistent link: https://www.econbiz.de/10010320106
This paper studies an industry in which firms can choose to provide open or closed platforms. Open platforms, as opposed to closed, are extendable so third-party producers can develop extensions for them. Building on a two-sided market model, I show that firms might prefer to commit to keeping...
Persistent link: https://www.econbiz.de/10010320284
Empirical evidence suggests that people dislike ads in media products like TV programs. In such situations standard economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of recent advances in the theory of Industrial...
Persistent link: https://www.econbiz.de/10010264591
We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all...
Persistent link: https://www.econbiz.de/10010275870