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introduction of conversion technologies can reduce the social costs of standardization without compromising the benefits of network …
Persistent link: https://www.econbiz.de/10014051431
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
Persistent link: https://www.econbiz.de/10008773428
We analyze competition between two platforms with positive network externalities. Platforms can choose to interconnect or alternatively, operate exclusively. We examine how this decision will affect pricing behaviour and incentives to invest in Platform quality. We find that interconnection is...
Persistent link: https://www.econbiz.de/10010299147
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 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
We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the ratio of switching costs to network effects, our model generates four different market patterns: monopolization and market sharing which can be either monotone or alternating. A...
Persistent link: https://www.econbiz.de/10009236846