Vertical relationships within platform marketplaces

Artikel

In two-sided markets a platform allows consumers and sellers to interact by creating sub-markets within the platform marketplace. For example, Amazon has sub-markets for all of the different product categories available on its site, and smartphones have sub-markets for different types of applications (gaming apps, weather apps, map apps, ridesharing apps, etc.). The network benefits between consumers and sellers depend on the mode of competition within the sub-markets: more competition between sellers lowers product prices, increases the surplus consumers receive from a sub-market, and makes platform membership more desirable for consumers. However, more competition also lowers profits for a seller which makes platform membership less desirable for a seller and reduces seller entry and the number of sub-markets available on the platform marketplace. This dynamic between seller competition within a sub-market and agents' network benefits leads to platform pricing strategies, participation decisions by consumers and sellers, and welfare results that depend on the mode of competition. Thus, the sub-market structure is important when investigating platform marketplaces.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Games ; ISSN: 2073-4336 ; Volume: 7 ; Year: 2016 ; Issue: 3 ; Pages: 1-21 ; Basel: MDPI

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Vertical Restraints; Resale Price Maintenance; Quantity Discounts ; Firm Organization and Market Structure ; Market Structure, Pricing, and Design: General
• Thema: platforms and two-sided markets ; platform sub-markets ; platform marketplaces ; online marketplaces ; digital marketplaces ; network externalities

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Tremblay, Mark J.
• Ereignis: Veröffentlichung
• (wer): MDPI
• (wo): Basel
• (wann): 2016

Weitere Informationen

• DOI: doi:10.3390/g7030017
• Handle: http://hdl.handle.net/10419/167979
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ