Managing competition on a two‐sided platform

Managing competition on a two‐sided platform

On many two‐sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers...

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Veröffentlicht in:Journal of Economics & Management Strategy 2019-04, Vol.28 (1), p.5-22
Hauptverfasser: Belleflamme, Paul, Peitz, Martin
Format: Artikel
Sprache:eng
Schlagworte:
Competition
Economics and Finance
Humanities and Social Sciences
Imperfect competition
intermediation
network effects
Participation
platform competition
pricing
two‐sided markets
Vendors
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Zusammenfassung:On many two‐sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition affects platform pricing, product variety, and the number of platforms that carry trade.
ISSN:1058-6407
1530-9134
DOI:10.1111/jems.12311