Gambacorta, Leonardo; Madio, Leonardo; Parigi, Bruno Maria - 2023
We study an e-commerce platform’s incentive to enter the credit market and offer loans for vendors’ innovations. The … platform earns from both its lending ac- tivity and fees collected on transactions in the marketplace. If the platform does not … innovation. If the platform offers loans, it engages in a cross-subsidy raising the fee and lowering the loan rate. We identify …