AbstractWe study how competing matchmakers use prices to sort participants into search markets, where they form random pairwise matches, and how equilibrium outcomes compare with monopoly in terms of prices, search market structure and sorting efficiency. The role of prices to facilitate sorting is compromised by the need to survive price competition. We show that the competitive outcome can be less efficient in sorting than the monopoly outcome in terms of total match value. In particular, price competition results in a high quality market that is insufficiently exclusive.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number damiano-05-01-25-10-08-07.
Length: 0 pages
Date of creation: 25 Jan 2005
Date of revision: 18 Oct 2005
Contact details of provider:
Overtaking; complementarity; market structure; market coverage; market differentiation;
Other versions of this item:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D4 - Microeconomics - - Market Structure and Pricing
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- De Fraja, Gianni & Sákovics, József, 2010.
"Exclusive Nightclubs and Lonely Hearts Columns: Nonmonotone Participation in Optional Intermediation,"
SIRE Discussion Papers
2010-84, Scottish Institute for Research in Economics (SIRE).
- De Fraja, Gianni & Sákovics, József, 2012. "Exclusive nightclubs and lonely hearts columns: Non-monotone participation in optional intermediation," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 618-632.
- Gianni De Fraja & Jozsef Sakovics, 2010. "Exclusive Nightclubs and Lonely Hearts Columns: Non-monotone Participation in Optional Intermediation," ESE Discussion Papers 196, Edinburgh School of Economics, University of Edinburgh.
- De Fraja, Gianni & Sákovics, József, 2010. "Exclusive Nightclubs and Lonely Hearts Columns: Non-monotone Participation in Optional Intermediation," CEPR Discussion Papers 8059, C.E.P.R. Discussion Papers.
- Attila Ambrus & Rossella Argenziano, 2009.
"Asymmetric Networks in Two-Sided Markets,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 1(1), pages 17-52, February.
- Ambrus, Attila & Argenziano, Rossella, 2009. "Asymmetric Networks in Two-Sided Markets," Scholarly Articles 3204916, Harvard University Department of Economics.
- Argenziano, Rossella & Ambrus, Attila, 2009. "Asymmetric Networks in Two-sided Markets," Scholarly Articles 4589709, Harvard University Department of Economics.
- Goos, Maarten & Van Cayseele, Patrick & Willekens, Bert, 2011.
"Platform pricing in matching markets,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/328974, Katholieke Universiteit Leuven.
- Attila Ambrus & Rossella Argenziano, 2004.
"Network Markets and Consumer Coordination,"
CESifo Working Paper Series
1317, CESifo Group Munich.
- Attila Ambrus & Rosella Argenziano, 2004. "Network Markets and Consumer Coordination," IEHAS Discussion Papers 0423, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Attila Ambrus & Rossella Argenziano, 2004. "Network Markets and Consumers Coordination," Cowles Foundation Discussion Papers 1481, Cowles Foundation for Research in Economics, Yale University.
- Francois Ortalo-Magne & Aviv Nevo & Igal Hendel, 2007.
"The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com,"
2007 Meeting Papers
89, Society for Economic Dynamics.
- Igal Hendel & Aviv Nevo & François Ortalo-Magné, 2009. "The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com," American Economic Review, American Economic Association, vol. 99(5), pages 1878-98, December.
- Igal Hendel & Aviv Nevo & François Ortalo-Magné, 2007. "The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com," NBER Working Papers 13360, National Bureau of Economic Research, Inc.
- Renato Gomes & Alessandro Pavan, 2013. "Cross-Subsidization and Matching Design," Discussion Papers 1559, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-43, Summer.
- Martin Peitz, 2006. "Marktplätze und indirekte Netzwerkeffekte," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(3), pages 317-333, 08.
- Rogério Mazali & José Rodrigues-Neto, 2011. "Dress to Impress: Brands as Status Symbols," ANU Working Papers in Economics and Econometrics 2011-567, Australian National University, College of Business and Economics, School of Economics.
- Ralf Dewenter & Juergen Roesch, 2012. "Market entry into emerging two-sided markets," Economics Bulletin, AccessEcon, vol. 32(3), pages 2343-2352.
- Kurucu, Gokce, 2007. "Negative Network Externalities in Two-Sided Markets: A Competition Approach," MPRA Paper 9746, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Peters).
If references are entirely missing, you can add them using this form.