Exclusivity and Exclusion on Platform Markets
AbstractWe examine conditions under which a platform ?rm can exclude rivals by bundling a product that some on one side of the market re- gard as essential with its platform, and pursue implications for market performance. We show that the impact of an exclusive dealing con- tract between the upstream ?rm and one of the downstream ?rms on market performance depends on the strength of consumer preferences for the products of the two downstream ?rms and the relative size of the market segment for which the complementary consumption good is essential. In some cases this may reduce the net social welfare.
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Bibliographic InfoPaper provided by Purdue University, Department of Economics in its series Purdue University Economics Working Papers with number 1254.
Length: 53 pages
Date of creation: Sep 2010
Date of revision:
exclusion; essential components; exclusive contract; platform market;
Other versions of this item:
- Subhashish M. Chowdhury & Stephen Martin, 2010. "Exclusivity and exclusion on platform markets," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-14, School of Economics, University of East Anglia, Norwich, UK..
- Subhasish M. Chowdhury & Steven Martin, 2010. "Exclusivity and Exclusion on Platform Markets," University of East Anglia Applied and Financial Economics Working Paper Series 016, School of Economics, University of East Anglia, Norwich, UK..
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-02 (All new papers)
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