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 differ with regard to their ownership structure: an independent third party incumbent marketplace competes with a challenging collaborative buy-side consortium marketplace in terms of attracting buying and selling firms. When firms can register exclusively with at most one intermediary, the incumbent is only able to deter entry if the number of firms taking ownership in the consortium is sufficiently small. Otherwise, the consortium can successfully enter and monopolize the market. When agents can multi-home, i.e. they register simultaneously with both intermediaries, the consortium can always enter while both intermediaries stay in the market with positive profits
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 191.
Date of creation: 11 Aug 2004
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B2B e-commerce; intermediation; network externalities; matching;
Other versions of this item:
- Sülzle, Kai, 2009. "Duopolistic competition between independent and collaborative business-to-business marketplaces," International Journal of Industrial Organization, Elsevier, vol. 27(5), pages 615-624, September.
- 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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