Second-Degree Price Discrimination on Two-Sided Markets
AbstractThe present paper provides a descriptive analysis of the second-degree price discrimination problem on a monopolistic two-sided market. By imposing a simple two-sided framework with two distinct types of agents on one of its market sides, it will be shown that under incomplete information, the extent of platform access for high-demand agents is strictly reduced below the benchmark level (complete information). In addition, the paper’s findings imply that it is feasible in the optimum to charge higher payments from low-demand agents if the extent of interaction with agents from the opposite market side is assumed to be bundle-specific.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40951.
Date of creation: 30 Aug 2012
Date of revision:
two-sided markets; second-degree price discrimination; monopoly;
Find related papers by JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-09 (All new papers)
- NEP-COM-2012-09-09 (Industrial Competition)
- NEP-IND-2012-09-09 (Industrial Organization)
- NEP-NET-2012-09-09 (Network Economics)
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