Böhme, Enrico and Müller, Christopher (2012): Monopolistic Location Choice in Two-Sided Industries.
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We analyze the optimal location choice of a monopolistic firm that operates two platforms on a two-sided market. We show that the optimal platform locations are equivalent to the one-sided benchmark if both sides are either restricted to single- or multi-homing. In the mixed case (one side single-homes, the other one multi-homes), the optimal platform locations are determined by the relative profitability of both market sides. Our results indicate that modeling mergers on two-sided markets with fixed locations is often inappropriate.
|Item Type:||MPRA Paper|
|Original Title:||Monopolistic Location Choice in Two-Sided Industries|
|Keywords:||two-sided markets; location choice; monopoly; merger simulation|
|Subjects:||K - Law and Economics > K2 - Regulation and Business Law > K20 - General
L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L12 - Monopoly; Monopolization Strategies
D - Microeconomics > D4 - Market Structure and Pricing > D42 - Monopoly
|Depositing User:||Enrico Böhme|
|Date Deposited:||07. Oct 2012 15:56|
|Last Modified:||14. Feb 2013 07:40|
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