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Managing competition on a two-sided platform

Author

Listed:
  • Paul Belleflamme

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Martin Peitz

    (Department of Economics and MaCCI, University of Mannheim, CEPR - Center for Economic Policy Research, CESifo - Center for Economic Studies and Ifo for Economic Research - CESifo Group Munich, Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - University of Mannheim = Universität Mannheim)

Abstract

On many two-sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition affects platform pricing, product variety, and the number of platforms that carry trade.

Suggested Citation

  • Paul Belleflamme & Martin Peitz, 2019. "Managing competition on a two-sided platform," Post-Print hal-03590196, HAL.
    • Handle: RePEc:hal:journl:hal-03590196
    DOI: 10.1111/jems.12311
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    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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