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competing platforms. We first show how the dispersion of information interacts with the network effects in determining the …
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We study monopoly and duopoly pricing in a two-sided market with dispersed information about users' preferences. We first show how the dispersion of information introduces idiosyncratic uncertainty about participation rates and how the latter shapes the elasticity of the demands and thereby the...
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platforms. This leads to a new form of competition between platforms, in which they do not steal viewers from each other, but … strategic interaction between platforms. This result holds for general viewer demand functions and is robust to allowing for … platform leads to an increase in the advertising level if viewers' preferences for the platforms are negatively correlated …
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