PRICE DISCRIMINATION IN TWO-SIDED MARKETS

被引:26
作者
Liu, Qihong [1 ]
Serfes, Konstantinos [2 ]
机构
[1] Univ Oklahoma, Dept Econ, Norman, OK 73019 USA
[2] Drexel Univ, Dept Econ & Int Business, Bennett S LeBow Coll Business, Philadelphia, PA 19104 USA
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中图分类号
F [经济];
学科分类号
02 ;
摘要
We examine the profitability and welfare implications of targeted price discrimination (PD) in two-sided markets. First, we show that equilibrium discriminatory prices exhibit novel features relative to discriminatory prices in one-sided models and uniform prices in two-sided models. Second, we compare the profitability of perfect PD, relative to uniform prices in a two-sided market. The conventional wisdom from one-sided horizontally differentiated markets is that PD hurts the firms and benefits consumers, prisoners' dilemma. We show that PD, in a two-sided market, may actually soften the competition. Our results suggest that the conventional advice that PD is good for competition based on one-sided markets may not carry over to two-sided markets.
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页数:19
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