Hybrid platform model: monopolistic competition and a dominant firm.

We model a platform controlling the variety and prices of the products it hosts via a percentage fee on sellers and choosing whether to sell its own products (hybrid mode). We derive a mixed market demand system for differentiated products with monopolistically competitive sellers and a sizeable pla...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 55; no. 4; pp. 684 - 719
Autores principales: Anderson, Simon, Bedre Defolie, Özlem
Formato: Artículo
Publicado: Wiley-Blackwell Dec2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2024
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        atl: Hybrid platform model: monopolistic competition and a dominant firm.
      aug:
        au:
          Anderson, Simon
          Bedre Defolie, Özlem
        affil:
          University of Virginia and CEPR
          European University Institute, ESMT Berlin and CEPR, Via delle Fontanelle 18, Florence Fiesole 50014
      su:
        Monopolistic competition
        Consumers
        Marketplaces
        Price regulation
        Administrative fees
      sug:
        subj:
          Monopolistic competition
          Consumers
          Marketplaces
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          Price regulation
          Administrative fees
      ab: We model a platform controlling the variety and prices of the products it hosts via a percentage fee on sellers and choosing whether to sell its own products (hybrid mode). We derive a mixed market demand system for differentiated products with monopolistically competitive sellers and a sizeable platform product range. The hybrid platform steers consumers toward its products by charging higher seller fees than pure marketplace. This "insidious steering" intensifies the larger the platform's product footprint. Hybrid mode harms consumers compared to pure marketplace unless fringe entry is sufficiently inelastic.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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