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Platform Competition with Intra-Group Externalities

Author

Listed:
  • Barna Bakó

    (Corvinus University of Budapest and MTA-BCE,,Lendület” Strategic Interactions Research Group)

  • Dániel Fátay

    (KUKA Robotics)

Abstract

In this article we analyze asymmetric two-sided markets. Two types of agents are assumed to interact with each other and we assume that agents of one type derive utility from inter-group interactions, while the other type of agents benefit from intra-group rather than from inter-group interactions as it is assumed in the standard symmetric two-sided markets model. First, we consider a monopoly platform, then we analyze competing platforms, both with single-homing and multi-homing abilities.

Suggested Citation

  • Barna Bakó & Dániel Fátay, 2019. "Platform Competition with Intra-Group Externalities," Journal of Industry, Competition and Trade, Springer, vol. 19(1), pages 141-154, March.
    • Handle: RePEc:kap:jincot:v:19:y:2019:i:1:d:10.1007_s10842-018-0282-7
    DOI: 10.1007/s10842-018-0282-7
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    References listed on IDEAS

    as
    1. E. Glen Weyl, 2010. "A Price Theory of Multi-sided Platforms," American Economic Review, American Economic Association, vol. 100(4), pages 1642-1672, September.
    2. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    3. Hagiu, Andrei & Hałaburda, Hanna, 2014. "Information and two-sided platform profits," International Journal of Industrial Organization, Elsevier, vol. 34(C), pages 25-35.
    4. Vasconcelos, Helder, 2015. "Is exclusionary pricing anticompetitive in two-sided markets?," International Journal of Industrial Organization, Elsevier, vol. 40(C), pages 1-10.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Two-sided markets; Network effect; Platform competition; Single-homing; Multi-homing;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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