IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00903346.html
   My bibliography  Save this paper

La gratuité peut-elle avoir des effets anticoncurrentiels ? Une perspective d'économie industrielle sur le cas Google

Author

Listed:
  • Estelle Malavolti

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien - ENAC - Ecole Nationale de l'Aviation Civile)

  • Frédéric Marty

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

Firms operating in two-sided markets have to integrate in their optimal pricing structure the existence of indirect externalities across groups of consumers. Beyond direct externalities (network effects), such markets are characterized by the increasing value of the platform for the users on one side with the number on the other side. As for Internet search platforms such as Google, their value for advertisers depends on the number of users and especially of precisely targeted ones. As a consequence, the optimal price structure in a two-sided market cannot be symmetrical. In other words, the price structure is not neutral and has to take into account such linkages between these two groups of users. From an economic point of view, it may make sense to impose no charge for the group that generates the most valuable externalities. With antitrust inquiries, such specificity imposes to consider simultaneously both sides of the markets. Otherwise, the risk of false negative decisions may arise. On one side the pricing strategy might be interpreted as a predatory practice and on the other side as an exploitative abuse. As the number and the loyalty of users on one side is an essential input to competition between platforms on the other side, it might be rational to subsidize them by acquiring exclusive rights on some valuable contents and to implement bundling and tying strategies. The main risk lies in some market foreclosure. The market might evolve towards vertically integrated ecosystems, e.g. a silos model of competition. Furthermore, competition authorities have to define a sound economics-based theory of harm to disentangle practices that reduce consumer welfare (by increasing switching costs) from ones that might be finally welfare-enhancing. The issue of remedies arises inexorably from this point. Our paper sheds light on these industrial economics and competition law issues.

Suggested Citation

  • Estelle Malavolti & Frédéric Marty, 2013. "La gratuité peut-elle avoir des effets anticoncurrentiels ? Une perspective d'économie industrielle sur le cas Google," Post-Print halshs-00903346, HAL.
  • Handle: RePEc:hal:journl:halshs-00903346
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Estelle Malavolti & Frédéric Marty, 2016. "State Aids granted by regional airports: a two-sided market analysis," Post-Print halshs-01538698, HAL.

    More about this item

    Keywords

    Two-sided markets; Internet search markets; exclusionary practices; market foreclosure; remedies; marchés bifaces; Plates-formes électroniques; forclusion; éviction anticoncurrentielle; remèdes;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00903346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.