Pricing distortions in multi-sided platforms
| Autor: | Hongru Tan, Julian Wright |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Computer science Strategy and Management 05 social sciences Economics Econometrics and Finance (miscellaneous) Scale (descriptive set theory) Regulatory policy Social planner Displacement (vector) Distortion 0502 economics and business Industrial relations Econometrics Market power 050207 economics Monopoly 050205 econometrics |
| Zdroj: | International Journal of Industrial Organization. 79:102732 |
| ISSN: | 0167-7187 |
| DOI: | 10.1016/j.ijindorg.2021.102732 |
| Popis: | We consider the reasons why a monopoly multi-sided platform may price differently from a social planner. The existing literature has focused only on the classical market power distortion and a distortion in the spirit of Spence. We show two additional distortions appear in the presence of cross-group network effects, which we call the displacement distortion and the scale distortion. We show conditions under which the displacement distortion exactly offsets the Spence distortion, and provide an example in which the total of these different distortions results in monopoly prices per user that are lower than the social planner’s on both sides. Our results have implications for regulatory policy, which we briefly discuss. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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