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Merger control on two-sided markets: is there need for an efficiency defense?

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  • Edmond Baranes
  • Thomas Cortade
  • Andreea Cosnita-Langlais

Abstract

We study horizontal mergers on two-sided markets between horizontally differentiated platforms. We provide a theoretical analysis of the merger's price effect based on the amount of cost savings it generates, the behavior of outsider platforms, and the size of cross-group network effects. We point out differences as compared with the standard, one-sided merger analysis, and also discuss the merger control policy implications.

Suggested Citation

  • Edmond Baranes & Thomas Cortade & Andreea Cosnita-Langlais, 2014. "Merger control on two-sided markets: is there need for an efficiency defense?," Working Papers 14-12, LAMETA, Universtiy of Montpellier, revised Nov 2014.
  • Handle: RePEc:lam:wpaper:14-12
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    File URL: http://www.lameta.univ-montp1.fr/Documents/DR2014-12.pdf
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    References listed on IDEAS

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    1. Lapo Filistrucchi & Tobias J. Klein & Thomas O. Michielsen, 2012. "Assessing Unilateral Merger Effects In A Two-Sided Market: An Application To The Dutch Daily Newspaper Market," Journal of Competition Law and Economics, Oxford University Press, vol. 8(2), pages 297-329.
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    Cited by:

    1. Jullien, Bruno & Sand-Zantman, Wilfried, 2021. "The Economics of Platforms: A Theory Guide for Competition Policy," Information Economics and Policy, Elsevier, vol. 54(C).
    2. Correia da silva, Joao & Jullien, Bruno & Lefouili, Yassine & Pinho, Joana, 2018. "Horizontal Mergers Between Multi-Sided Platforms: Insights from Cournot Competition," TSE Working Papers 18-946, Toulouse School of Economics (TSE).
    3. Joao Correia‐da‐Silva & Bruno Jullien & Yassine Lefouili & Joana Pinho, 2019. "Horizontal mergers between multisided platforms: Insights from Cournot competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(1), pages 109-124, January.

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    More about this item

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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