, which is private in nature, cannot influence expectations regarding the network sizes, inducing the platforms to offer lower … participation fees for developers. Those lower fees increase network benefits for consumers, allowing the platforms to exploit these … benefits through personalized pricing. Personalized prices are higher when the network value for developers is high, benefiting …

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 Organization and two-sided markets we show that taxing ads may be …