A Dynamic Contest Model of Platform Competition in Two-Sided Markets PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download A Dynamic Contest Model of Platform Competition in Two-Sided Markets PDF full book. Access full book title A Dynamic Contest Model of Platform Competition in Two-Sided Markets by Martin Grossmann. Download full books in PDF and EPUB format.
Author: Martin Grossmann
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
Get Book Here
Book Description
In this article, we analyze the dynamic competition between two platform firms (A&B) in two-sided markets with network externalities. In Period 1, platform A or B wins the contest in a first stage and can serve the two-sided market monopolistically in a second stage. In Period 2, the two platforms carry over previous investments to a subsequent contest in a first stage, and the winner (A or B) serves the market monopolistically in a second stage. We show that a head start of one platform does not guarantee future success. The combination of cost advantages and network externalities affects the platforms' success. Moreover, a market dominance of a platform does not necessarily result in higher profits.
Author: Martin Grossmann
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
Get Book Here
Book Description
In this article, we analyze the dynamic competition between two platform firms (A&B) in two-sided markets with network externalities. In Period 1, platform A or B wins the contest in a first stage and can serve the two-sided market monopolistically in a second stage. In Period 2, the two platforms carry over previous investments to a subsequent contest in a first stage, and the winner (A or B) serves the market monopolistically in a second stage. We show that a head start of one platform does not guarantee future success. The combination of cost advantages and network externalities affects the platforms' success. Moreover, a market dominance of a platform does not necessarily result in higher profits.
Author: Mingchun Sun
Publisher:
ISBN:
Category :
Languages : en
Pages : 168
Get Book Here
Book Description
Author: Paul Belleflamme
Publisher: Cambridge University Press
ISBN: 1108625622
Category : Business & Economics
Languages : en
Pages : 275
Get Book Here
Book Description
Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.
Author: Jay Hyun
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
In light of recent trends in social networking services that encourage users of platforms to “share,” “recommend,” and “do activities” with others, this work analyzes platform competition in two-sided markets that exhibit direct (or within-) network effect in addition to conventional cross-network effect. Introduction of direct network effect to one group (buyer-side) in a two-sided market generates two counter-acting effects: demand-augmenting effect and demand-sensitizing effect. The former allows platforms to raise buyer-side price, thereby increasing the sum of prices charged to buyers and sellers, whereas the latter causes platforms to lower them. I show that demand-augmenting effect dominates demand-sensitizing effect under the monopoly platform, whereas introducing competition between platforms under sufficient direct network effect relatively strengthens the demand- sensitizing effect, which lowers the price charged to buyers.
Author: Byung-Cheol Kim
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
We empirically study a dynamic platform competition in the online daily deals promotion industry characterized by intense rivalry between two leading promotion sites, Groupon and LivingSocial, that broker between local merchants and local consumers. We find that, for a comparable deal, the incumbent Groupon enjoys a significant advantage in performance measured in the number of coupon sales, which appears largely attributable to its greater network size in the consumer side. Yet LivingSocial successfully enters and quickly increases penetration in this market. We find no evidence that LivingSocial offers consumers more favorable terms on their deals than Groupon. Instead, on the merchant side, we find that LivingSocial poach merchants from Groupon, aided by the publicly available information on individual merchants and deal performance. Poached deals generate greater and more predictable coupon sales than the deals developed internally. While information-based poaching provides a foothold for the entrant in overcoming the initial size disadvantage, over time it turns into a competition-intensifying channel, as Groupon reacts by the same poaching strategy. Our study shows how platforms compete dynamically in a two-sided market with open information structure, thereby complements prior theoretical developments for multi-sided markets.
Author: Elena B. Zavyalova
Publisher: Springer Nature
ISBN: 3030754057
Category : Business & Economics
Languages : en
Pages : 450
Get Book Here
Book Description
This book reflects the futuristic scientific view of the consequences of transition to Industry 4.0 for climate change. The authors present a systemic overview of the current negative consequences of digitization for the environment, new outlines of the energy sphere in Industry 4.0 and the change of the environment pollution level in Industry 4.0. The book also analyses the ecological consequences of growth and development of Industry 4.0, and considers Industry 4.0 as an alternative to fighting climate change. The book presents a view on fighting climate change in Industry 4.0 from the positions of shifting the global community’s attention from environment protection to formation of the digital economy. A logical continuation of this book is a view from the opposite side, which would allow reflecting the contribution of Industry 4.0 into fighting climate change and the perspectives of harmonization of these top-priority directions of the global economy’s development. This book will be of interest to academics and practitioners interested in climate change and development of Industry 4.0, as well contributing to a national economic policy for fighting climate change and corporate strategies of sustainable development in Industry 4.0.
Author: Jean-Charles Rochet
Publisher:
ISBN:
Category : Markets
Languages : en
Pages : 47
Get Book Here
Book Description
Author: Kate Ho
Publisher: Elsevier
ISBN: 0323988873
Category : Business & Economics
Languages : en
Pages : 782
Get Book Here
Book Description
Handbook of Industrial Organization Volume 4 highlights new advances in the field, with this new volume presenting interesting chapters. Each chapter is written by an international board of authors. Part of the renowned Handbooks in Economics series Chapters are contributed by some of the leading experts in their fields A source, reference and teaching supplement for industrial organizations or industrial economists
Author: Richard Schmalensee
Publisher: North Holland
ISBN:
Category : Business & Economics
Languages : en
Pages : 1002
Get Book Here
Book Description
Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
Author: Sujit Chakravorti
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Get Book Here
Book Description
In this article, we construct a model to study competing payment networks, where networks offer differentiated products in terms of benefits to consumers and merchants. We study market equilibria for a variety of market structures: duopolistic competition and cartel, symmetric and asymmetric networks, and alternative assumptions about multihoming and consumer preferences. We find that competition unambiguously increases consumer and merchant welfare. We extend this analysis to competition among payment networks providing different payment instruments and find similar results.
