Arbeitspapier

Segmentation versus agglomeration: Competition between platforms with competitive sellers

For many products, platforms enable sellers to transact with buyers. We show that the competitive conditions among sellers shape the market structure in platform industries. If product market competition is tough, sellers avoid competitors by joining different platforms. This allows platforms to sustain high fees and explains why, for example, in some online markets, several homogeneous platforms segment the market. Instead, if product market competition is soft, agglomeration on a single platform emerges, and platforms fight for the dominant position. These insights give rise to novel predictions. For instance, market concentration and fees are negatively correlated in platform industries, which inverts the standard logic of competition.

Sprache
Englisch

Erschienen in
Series: Working Paper Series ; No. 17-03

Klassifikation
Wirtschaft
Oligopoly and Other Imperfect Markets
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Thema
intermediation
two-sided markets
market structure
price competition
endogenous segmentation

Ereignis
Geistige Schöpfung
(wer)
Karle, Heiko
Peitz, Martin
Reisinger, Markus
Ereignis
Veröffentlichung
(wer)
University of Mannheim, Department of Economics
(wo)
Mannheim
(wann)
2017

Handle
URN
urn:nbn:de:bsz:180-madoc-431286
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Karle, Heiko
  • Peitz, Martin
  • Reisinger, Markus
  • University of Mannheim, Department of Economics

Entstanden

  • 2017

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