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The two sides of platform collusion

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  • Alexandre Carbonnel

Abstract

The recent case in the meal vouchers market in France has put collusion in two-sided markets in the spotlight. This paper discusses the key insights from the recent literature with respect to the consequences of collusion on prices and consumer surplus. I explain why focusing exclusively on prices is misleading in the case of two-sided markets and why a broader assessment also accounting for the impact of collusion on externalities is required. Furthermore, collusion does not necessarily harm all users, which justifies a case-by-case approach. Finally, I provide a concrete example of the assessment of collusion in two-sided markets using the example of the meal vouchers market and show that the insights from the current literature do not apply in this instance. This demonstrates the role that the characteristics of the market under investigation play with respect to the conclusions that may be drawn from collusion in two-sided markets.

Suggested Citation

  • Alexandre Carbonnel, 2021. "The two sides of platform collusion," European Competition Journal, Taylor & Francis Journals, vol. 17(3), pages 745-760, September.
    • Handle: RePEc:taf:recjxx:v:17:y:2021:i:3:p:745-760
    DOI: 10.1080/17441056.2021.1984011
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    Cited by:

    1. Jiancai Pi & Pengqing Zhang, 2024. "Platform competition with common ownership," Journal of Economics, Springer, vol. 142(3), pages 247-265, August.

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