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Ride-sharing platforms match riders and drivers by setting two prices. One price is what riders pay, the other is what drivers receive. There is no bargaining process between riders and drivers and there is also no direct transaction between these two sides. Thus, we may think of this market as...
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We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables … discrimination, the platform can condition its fee on sellers' type. In a model with linear demand on each side, we show that price … improvement, with both seller types being better-off than under uniform pricing. These results, which are in stark contrast to the …
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We apply the potential game approach to analyze the problem of two-sided platform entry competition. According to the … equilibrium results, the platform with the bigger “value” will capture the entire market, and the incumbent has the “incumbent … value advantage” over the entrant. When the entrant platform satisfies both “value” over the incumbent and low advertising …
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This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers … advertising level, and market structure. The relationship results from a trade off between a price effect and a market structure-matching …
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a two-sided platform business. Consumer behavior is imperfect and, when adopting a platform, consumers only take …
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