Cournot platform competition with mixed-homing

IF 1.7 3区 经济学 Q2 ECONOMICS
Mark J. Tremblay , Takanori Adachi , Susumu Sato
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引用次数: 0

Abstract

Competition in quantity dates back to Cournot (1838) for traditional markets and Katz and Shapiro (1985) for markets with direct network effects. In this paper, we consider Cournot platform competition in two-sided markets with indirect network effects while allowing for single-, multi-, and mixed-homing allocations. We find that the markup and markdown terms that are typically found in monopoly two-sided pricing are distorted toward zero when platform competition intensifies. We also generalize the monopoly platform Lerner indices from Armstrong (2006) and Weyl (2010) to include competition and mixed-homing allocations. Lastly, we show that welfare decreases in the number of platforms for the most commonly considered homing allocations, highlighting how the welfare loss from breaking up a network across smaller platforms can outweigh the welfare benefits from lower aggregate prices in a setting where platforms are homogenous.

古诺平台与混居竞争
数量上的竞争可以追溯到库诺(1838)对传统市场的竞争,以及卡茨和夏皮罗(1985)对具有直接网络效应的市场的竞争。在本文中,我们考虑了双边市场中具有间接网络效应的Cournot平台竞争,同时考虑了单、多和混合归位分配。我们发现,当平台竞争加剧时,垄断双边定价中通常存在的加成和降价条款被扭曲为零。我们还将Armstrong(2006)和Weyl(2010)的垄断平台Lerner指数推广到包括竞争和混合归位分配。最后,我们发现,在最常见的归位分配中,福利会减少平台的数量,这突出表明,在平台同质的情况下,拆分较小平台的网络所带来的福利损失可能会超过较低总价格带来的福利收益。
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来源期刊
CiteScore
2.50
自引率
6.70%
发文量
48
审稿时长
77 days
期刊介绍: The IJIO is an international venture that aims at full coverage of theoretical and empirical questions in industrial organization. This includes classic questions of strategic behavior and market structure. The journal also seeks to publish articles dealing with technological change, internal organization of firms, regulation, antitrust and productivity analysis. We recognize the need to allow for diversity of perspectives and research styles in industrial organization and we encourage submissions in theoretical work, empirical work, and case studies. The journal will also occasionally publish symposia on topical issues.
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