Platform competition and price discrimination

نویسندگان

چکیده

We study price discrimination strategy of an Incumbent platform that faces competition from Entrant. introduce heterogeneous agents on the consumer side, where buyers assign different values to interaction benefits generated a platform. analyse dominant firm equilibrium, incumbent offers two versions its service consumers. The results are compared across scenarios. first is when sellers allowed multi-home and second they can only join single find in case multi-homing, cannot charge any group more than marginal cost provided them. In singe-homing case, strength indirect network effects determines side which extracts positive surplus.

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ژورنال

عنوان ژورنال: Indian economic review

سال: 2022

ISSN: ['0019-4670', '2520-1778']

DOI: https://doi.org/10.1007/s41775-022-00138-9