Behringer, Stefan (2005): Equilibrium Market and Pricing Structures in Virtual Platform Duopoly. Unpublished.
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We investigate the equilibrium market sturcture in virtual platform duopoly (auctions or other market forms) that are prevalent in internet settings. We take full account of the complexity of network effects in such markets and determine optimal pricing strategies. We invstigate the welfare implications of such strategies, look at the impact of non-exclusive services and at what happens in large markets.
| Item Type: | MPRA Paper |
|---|---|
| Institution: | Goethe Universität Frankfurt |
| Language: | English |
| Keywords: | Two-sided Markets; Duopoly Pricing; |
| Subjects: | D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships; Contracts and Reputation; Networks |
| ID Code: | 3239 |
| Deposited By: | Stefan Behringer |
| Deposited On: | 16. May 2007 |
| Last Modified: | 07. Nov 2007 03:03 |
| References: | Armstrong, M. (2004): ”Competition in Two-Sided Markets”, University College London,(mimeo.). Caillaud, B. & Jullien, B. (2001): ” Competing Cybermediaries”, European Economic Review, 45, 797-808. Caillaud, B. & Jullien, B. (2003): ”Chicken & Egg: Competition Among Intermediation Service Providers”, Rand Journal of Economics, 34(2), 309-328. FAZ (2003): ”Mobile verliert Marktführerschaft im Online Autogeschäft”, Frankfurter Allgemeine Zeitung, 10.11.2003, Nr. 261, p.19. Ellison, G., Fudenberg, D., & Möbius, M. (2004): ”Competing Auctions”, The Journal of the European Economic Association, 2(1), p.30-66. McGrath, S. (2005): ”Understanding Supply and Demand on eBay”, available at http://www.auctionbytes.com/cab/abu/y205/m03/abu0138/s03 (02.12.2005) Rochet, J.-C. & Tirole, J. (2004): ”Two-sided Markets: An Overview”, IDEI, Toulouse, (mimeo.). Yin, P.-L. (2004): ”Online Auction Markets”, Harvard Business School Case Study, 9-705-411, August 23, 2004. |
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