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Equilibrium Market and Pricing Structures in Virtual Platform Duopoly

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  • Behringer, Stefan

Abstract

We investigate the equilibrium market sturcture in virtual platform duopoly (auctions or other market forms) that are prevalent in internet settings. We take full account of the complexity of network effects in such markets and determine optimal pricing strategies. We invstigate the welfare implications of such strategies, look at the impact of non-exclusive services and at what happens in large markets.

Suggested Citation

  • Behringer, Stefan, 2005. "Equilibrium Market and Pricing Structures in Virtual Platform Duopoly," MPRA Paper 3239, University Library of Munich, Germany, revised 15 Apr 2007.
    • Handle: RePEc:pra:mprapa:3239
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    References listed on IDEAS

    as
    1. Caillaud, Bernard & Jullien, Bruno, 2003. "Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-328, Summer.
    2. Glenn Ellison & Drew Fudenberg & Markus Möbius, 2004. "Competing Auctions," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 30-66, March.
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    More about this item

    Keywords

    Two-sided Markets; Duopoly Pricing;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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