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Platform competition with common ownership and price parity clauses

Author

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  • Wang, Zheng

Abstract

This paper investigates the impact of common ownership on platform competition with price parity clauses (PPCs). We develop a model of two competing platforms and a multi-homing seller. While common ownership typically raises prices and reduces welfare without PPCs, it lowers platform fees and consumer prices under PPCs. As a result, it increases platform and seller profits, consumer surplus, and total welfare, generating a Pareto improvement.

Suggested Citation

  • Wang, Zheng, 2026. "Platform competition with common ownership and price parity clauses," Economics Letters, Elsevier, vol. 265(C).
  • Handle: RePEc:eee:ecolet:v:265:y:2026:i:c:s0165176526002181
    DOI: 10.1016/j.econlet.2026.113024
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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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