Duopolistic competition between independent and collaborative business-to-business marketplaces
AbstractThis paper studies imperfect price competition between two intermediaries in an electronic business-to-business matching market with indirect network externalities. The intermediaries have different ownership structures: an independent incumbent competes with a collaborative buy side consortium to attract buying and selling firms. When firms can register exclusively with one intermediary, the incumbent can deter entry only if the number of consortium owners is sufficiently small. Otherwise, the consortium can enter and monopolize the market. When firms can register with both intermediaries simultaneously, the consortium can always enter and both intermediaries stay in the market with positive profits.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 27 (2009)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505551
B2B e-commerce Intermediation Network externalities;
Other versions of this item:
- Kai Suelzle, 2004. "Duopolistic Competition between Independent and Collaborative Business-to-Business Marketplaces," Econometric Society 2004 Australasian Meetings 191, Econometric Society.
- Kai Sülzle, 2005. "Duopolistic Competition between Independent and Collaborative Business-to-Business Marketplaces," Ifo Working Paper Series Ifo Working Paper No. 5, Ifo Institute for Economic Research at the University of Munich.
- C - Mathematical and Quantitative Methods
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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