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Leadership in Multi-sided Markets

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  • Federico Etro

    ()
    (Department of Economics, University Of Venice Cà Foscari)

Abstract

I analyze the role of leadership in multi-sided markets as online advertising. Search and display advertising are better characterized by (respectively) quantity and price competition. A platform that reached dominance in search may have an incentive to limit services to consumers to be aggressive with the advertisers, to exploit its scale in search to build barriers to entry, or to adopt click-weighted auctions to manipulate the pricing of sponsored links. On the other side, a dominant platform in display advertising may increase the rewards of content providers to increase prices on advertisers, or may adopt exclusive clauses to predate on other platforms.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2011/WP_DSE_etro_19_11.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2011_19.

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Length: 17
Date of creation: 2011
Date of revision:
Handle: RePEc:ven:wpaper:2011_19

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Related research

Keywords: Multisided markets; Leadership; Dominance;

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Cited by:
  1. Lianos, I. & Motchenkova, E., 2012. "Market dominance and quality of search results in the search engine market," Discussion Paper, Tilburg University, Tilburg Law and Economic Center 2012-036, Tilburg University, Tilburg Law and Economic Center.

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