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Data sharing agreements in vertically differentiated two‐sided markets

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  • Juan‐Manuel Sánchez‐Cartas
  • Gonzalo León

Abstract

We study the impact of data sharing agreements between two platforms with vertically differentiated consumers. We assume several utility functions to address the impact of those agreements under different market configurations. The results show that the follower always wants to share its network with the leader, while the leader has no incentive to share its network. We also prove that vertical two‐sided markets are quite prone to monopolies. Lastly, we show that regimes in which the leader shares its network are worse than not sharing at all.

Suggested Citation

  • Juan‐Manuel Sánchez‐Cartas & Gonzalo León, 2020. "Data sharing agreements in vertically differentiated two‐sided markets," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(3), pages 260-281, September.
    • Handle: RePEc:bla:ijethy:v:16:y:2020:i:3:p:260-281
    DOI: 10.1111/ijet.12192
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