Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising
نویسندگان
چکیده
In two-sided markets, two groups of agents interact through platforms. Because agents’ decision to join a platform is affected by the presence on other side, their interactions create indirect network externalities and make platforms’ strategies different from those firms in one-sided markets. this paper, I use structural model show that platforms may take loss one side market profit mergers benefit some lowering prices or attracting more market. (JEL D62, G34, L82, M37)
منابع مشابه
Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising
In this paper I estimate platform markups in two-sided markets using structural models of platform demand. My models and estimation procedure are applicable to general two-sided market settings where agents on each side care about the presence of agents on the other side and platforms set two membership prices to maximize the sum of profits. Using data on TV magazines in Germany I show that the...
متن کاملEstimating Structural Models of Platform Competition in Two-sided Markets
In this paper I estimate theory-based structural models of two-sided markets with competing platforms. Given platforms’attributes and (two) prices, agents of each side decide which platforms to join. Platforms set prices to maximize the sum of profits that they earn from the two sides. There are two demand equations to be estimated, and both should be used in estimating platform markup due to c...
متن کاملPlatform Differentiation in Two-Sided Markets
In this paper we investigate a two-sided market platform model. In the standard framework, firms interact with consumers through one or more platform providers. For example, video game providers (firms) develop games for a gaming console (platform), and end users (consumers) play these games on the console. Consumer utility may depend on the number of other consumers who interact on one side of...
متن کاملPlatform Competition in Two-Sided Markets
Many if not most markets with network externalities are two-sided. To succeed, platforms in industries such as software, portals and media, payment systems and the Internet, must “get both sides of the market on board ”. Accordingly, platforms devote much attention to their business model, that is to how they court each side while making money overall. The paper builds a model of platform compe...
متن کاملThe media and advertising: a tale of two-sided markets
Media industries are important drivers of popular culture. A large fraction of leisure time is devoted to radio, magazines, newspapers, the Internet, and television (the illustrative example henceforth). Most advertising expenditures are incurred for these media. They are also mainly supported by advertising revenue. Early work stressed possible market failures in program duplication and cateri...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2021
ISSN: ['1945-7669', '1945-7685']
DOI: https://doi.org/10.1257/mic.20160052