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Platform Pricing at Sports Card Conventions

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  • Ginger Zhe Jin
  • Marc Rysman

Abstract

We study a new data set of US sports card conventions in order to evaluate the pricing theory of two-sided markets. Conventions are two-sided because organizers must set fees to attract both consumers and dealers. We have detailed information on consumer price, dealer price and, since most conventions are local, the market structure for conventions. We present several findings: first, consumer pricing decreases with competition at any reasonable distance, but pricing to dealers is insensitive to competition and in longer distances even increases with competition. Second, when consumer price is zero (and thus constrained), dealer price decreases more strongly with competition. These results are compatible with existing models of two-sided markets, but are difficult to explain without such models.

Suggested Citation

  • Ginger Zhe Jin & Marc Rysman, 2012. "Platform Pricing at Sports Card Conventions," NBER Working Papers 17959, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17959
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    Cited by:

    1. Vera Brenčič, 2016. "The impact of Craigslist’s entry on competing employment websites," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-15, December.
    2. Genakos, Christos & Valletti, Tommaso, 2011. "Seesaw in the air: Interconnection regulation and the structure of mobile tariffs," Information Economics and Policy, Elsevier, vol. 23(2), pages 159-170, June.
    3. Charles Angelucci & Julia Cagé, 2019. "Newspapers in Times of Low Advertising Revenues," American Economic Journal: Microeconomics, American Economic Association, vol. 11(3), pages 319-364, August.
    4. Charles Angelucci & Julia Cagé & Michael Sinkinson, 2020. "Media Competition and News Diets," NBER Working Papers 26782, National Bureau of Economic Research, Inc.
    5. Hui Li & Qiaowei Shen & Yakov Bart, 2018. "Local Market Characteristics and Online-to-Offline Commerce: An Empirical Analysis of Groupon," Management Science, INFORMS, vol. 64(4), pages 1860-1878, April.
    6. Rong, Ke & Xiao, Fei & Zhang, Xiaoyu & Wang, Jingjing, 2019. "Platform strategies and user stickiness in the online video industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 249-259.
    7. Hui Li & Qiaowei Shen & Yakov Bart, 2021. "Dynamic Resource Allocation on Multi-Category Two-Sided Platforms," Management Science, INFORMS, vol. 67(2), pages 984-1003, February.
    8. Richards, Timothy J. & Hamilton, Stephen F., 2018. "Food waste in the sharing economy," Food Policy, Elsevier, vol. 75(C), pages 109-123.
    9. Robert Seamans & Feng Zhu, 2014. "Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers," Management Science, INFORMS, vol. 60(2), pages 476-493, February.
    10. Yoshimoto, Hisayuki & Nakabayashi, Jun, 2019. "Search and resale frictions in a two-sided online platform: A case of multi-use assets," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 85-105.
    11. Robert Seamans & Feng Zhu, 2017. "Repositioning and Cost-Cutting: The Impact of Competition on Platform Strategies," Strategy Science, INFORMS, vol. 2(2), pages 83-99, June.
    12. Andre Boik, 2018. "Prediction and Identification in Two-Sided Markets," CESifo Working Paper Series 6857, CESifo.

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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L8 - Industrial Organization - - Industry Studies: Services

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