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This paper provides an overview of recent developments in algorithmic antitrust, and the economics and legal issues raised in the areas of abuse of dominance, algorithmic pricing and collusion, and mergers and acquisition. The general theme is that while much has been made of the possible...
Persistent link: https://www.econbiz.de/10014095428
We present a theory for why it might be rational for a platform to limit the number of applications available on it …
Persistent link: https://www.econbiz.de/10008673512
market failure. We provide an economic analysis of these allegations based upon economic theory as well as publicly available …, enriched with modern economic theory, should suffice to disincentivize the identified anticompetitive conduct for now. …
Persistent link: https://www.econbiz.de/10011492143
Should the FTC have allowed Zillow to acquire its foremost rival, Trulia? It is increasingly well-accepted that digital platforms tend toward dominance in their immediately adjacent relevant-product markets. Google, for example, has long held a majority share of the markets for general-search...
Persistent link: https://www.econbiz.de/10012958316
We study optimal experimentation by a monopolistic platform in a two-sided market framework. The platform provider faces uncertainty about the strength of the externality each side is exerting on the other. It maximizes the expected present value of its profit stream in a continuous-time...
Persistent link: https://www.econbiz.de/10009381848
This paper presents a model of second-degree price discrimination by a monopolistic seller who offers a menu of price-quantity pair contracts to consumers located in a social network. Network effects are local as consumers' private valuations are increasing in their friends' adoption decisions....
Persistent link: https://www.econbiz.de/10013004864
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers, might impose download limits on content consumers: doing so increases the degree to which those consumers view content providers products as substitutes. This, in turn, intensifies competition...
Persistent link: https://www.econbiz.de/10013056149
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers and mobile-phone networks, offer plans with download limits: through one of two mechanisms, doing so causes the providers of the content consumer purchase to either reduce their prices or...
Persistent link: https://www.econbiz.de/10013026975
When a consumer can appear on both sides of a two-sided market, such as a user who both buys and sells on eBay, the platform may want to bundle the services it provides to two sides. I develop a general model for such "mixed" two-sided markets, and show that a monopolist platform's incentive to...
Persistent link: https://www.econbiz.de/10012933628
The static model of two sided markets proposed by Rochet and Tirole analyses optimal pricing of a monopolistic platform at the equilibrium point. Their framework implicitly assumes that for each prices set by the platform, the equilibrium number of users on each side will be unique. However,...
Persistent link: https://www.econbiz.de/10012605827