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Price Parity Clauses and platform data acquisition

Author

Listed:
  • Enache, Andreea
  • Rhodes, Andrew

Abstract

Many platforms use Price Parity Clauses (PPCs) to prevent sellers charging lower prices elsewhere. In a setting where PPCs affect platforms’ data acquisition, we show that buyers and sellers may benefit from PPCs when the market is young.

Suggested Citation

  • Enache, Andreea & Rhodes, Andrew, 2025. "Price Parity Clauses and platform data acquisition," Economics Letters, Elsevier, vol. 256(C).
    • Handle: RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004720
    DOI: 10.1016/j.econlet.2025.112635
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    References listed on IDEAS

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    1. Chengsi Wang & Julian Wright, 2020. "Search platforms: showrooming and price parity clauses," RAND Journal of Economics, RAND Corporation, vol. 51(1), pages 32-58, March.
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    5. Benjamin Edelman & Julian Wright, 2015. "Price Coherence and Excessive Intermediation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1283-1328.
    6. Yongmin Chen, 2024. "Search and Competition Under Product Quality Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 72(2), pages 633-661, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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