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Platform competition with partial multihoming under differentiation: a note

Author

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  • Alexander Rasch

    (University of Cologne)

Abstract

A model of a two-sided market with two horizontally differentiated platforms and multihoming on one side is developed. In contrast to recent contributions, it is shown that platforms do not necessarily generate all revenues on the multihoming side by charging a higher price. Also, whether platforms' pricing structures favor exclusivity over multihoming is ambiguous.

Suggested Citation

  • Alexander Rasch, 2007. "Platform competition with partial multihoming under differentiation: a note," Economics Bulletin, AccessEcon, vol. 12(7), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-07l10003
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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume12/EB-07L10003A.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Lefouili, Yassine & Pinho, Joana, 2020. "Collusion between two-sided platforms," International Journal of Industrial Organization, Elsevier, vol. 72(C).
    2. Dietl Helmut & Lang Markus & Lin Panlang, 2023. "The Effects of Introducing Advertising in Pay TV: A Model of Asymmetric Competition between Pay TV and Free TV," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 23(1), pages 291-326, January.
    3. Liu, Bin & Zhao, Xiuyan & Gu, Qiongqiaong, 2024. "Pricing strategy and platform competition with partial multi-homing agents: When the aggregation platform exists in ride-sharing market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    4. Lefouili, Yassine & Pinho, Joana, 2020. "Collusion between two-sided platforms," International Journal of Industrial Organization, Elsevier, vol. 72(C).
    5. Ramnath K. Chellappa & Rajiv Mukherjee, 2021. "Platform Preannouncement Strategies: The Strategic Role of Information in Two-Sided Markets Competition," Management Science, INFORMS, vol. 67(3), pages 1527-1545, March.
    6. Enrico Böhme & Christopher Müller, 2013. "Price-Increasing Competition on Two-Sided Markets with Homogeneous Platforms," Journal of Industry, Competition and Trade, Springer, vol. 13(4), pages 453-479, December.
    7. Xie, Jiaping & Zhu, Weijun & Wei, Lihong & Liang, Ling, 2021. "Platform competition with partial multi-homing: When both same-side and cross-side network effects exist," International Journal of Production Economics, Elsevier, vol. 233(C).

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    More about this item

    Keywords

    multihoming;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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