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Vertical integration of platforms and product prominence

Author

Listed:
  • Morgane Cure
  • Ulrich Laitenberger

    (Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim, IP Paris - Institut Polytechnique de Paris, Télécom Paris, SES - Département Sciences Economiques et Sociales - Télécom ParisTech, ECO-Télécom Paris - Equipe Eco Economie - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom ParisTech - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Matthias Hunold
  • Reinhold Kesler
  • Thomas Larrieu

Abstract

Meta-search platforms, which enable consumers to compare product prices between different sales channels, are sometimes integrated with certain channels. A case in point is the online hotel booking industry where the major online travel agencies are integrated with meta-search platforms. Studying web-scraped data from the meta-search platform Kayak, we find indications that, for a given hotel, the offers of affiliated online travel agents (like Booking.com) are more visible than those of other online travel agents with the same price. Moreover, hotels appear to be less prominent in Kayak’s search results when the rival online travel agent Expedia has the lowest price.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Morgane Cure & Ulrich Laitenberger & Matthias Hunold & Reinhold Kesler & Thomas Larrieu, 2022. "Vertical integration of platforms and product prominence," Post-Print hal-03707038, HAL.
    • Handle: RePEc:hal:journl:hal-03707038
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    Cited by:

    1. Johannes Muthers & Sebastian Wismer, 2012. "Why Do Platforms Charge Proportional Fees? Commitment and Seller Participation," Working Papers 115, Bavarian Graduate Program in Economics (BGPE).

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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