Managing Competition on a Two-Sided Platform
Working paper
Issue number:
2018-20
Series:
AMSE Working Papers
Publisher:
Aix Marseille School of Economics
Year:
2018
On many two-sided platforms, users on one side not only care about user participation
and usage levels on the other side, but they also care about participation and usage of fellow
users on the same side. Most prominent is the degree of seller competition on a platform
catering to buyers and sellers. In this paper, we address how seller competition a§ects
platform pricing, product variety, and the number of platforms that carry trade.