scholarly journals Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising

2021 ◽  
Vol 13 (2) ◽  
pp. 35-67
Author(s):  
Minjae Song
Keyword(s):  
Market Power ◽  
Structural Model ◽  
Network Externalities ◽  
The Other ◽  
Two Sided Markets

In two-sided markets, two groups of agents interact through platforms. Because agents’ decision to join a platform is affected by the presence of agents on the other side, their interactions create indirect network externalities and make platforms’ strategies different from those of firms in one-sided markets. In this paper, I use a structural model to show that platforms may take a loss on one side of the market to make a profit on the other side and that platform mergers may benefit some agents by lowering prices or attracting more agents on the other side of the market. (JEL D62, G34, L82, M37)

scholarly journals A Price Theory of Multi-Sided Platforms

2010 ◽  
Vol 100 (4) ◽  
pp. 1642-1672 ◽  
Author(s):  
E. Glen Weyl
Keyword(s):  
General Theory ◽  
Market Power ◽  
Network Externalities ◽  
Profit Maximization ◽  
Price Regulation ◽  
Coordination Failure ◽  
Price Theory ◽  
General Measure ◽  
Monopoly Pricing ◽  
Two Sided Markets

I develop a general theory of monopoly pricing of networks. Platforms use insulating tariffs to avoid coordination failure, implementing any desired allocation. Profit maximization distorts in the spirit of A. Michael Spence (1975) by internalizing only network externalities to marginal users. Thus the empirical and prescriptive content of the popular Jean-Charles Rochet and Jean Tirole (2006) model of two-sided markets turns on the nature of user heterogeneity. I propose a more plausible, yet equally tractable, model of heterogeneity in which users differ in their income or scale. My approach provides a general measure of market power and helps predict the effects of price regulation and mergers. (JEL D42, D85, L14)

scholarly journals Asymmetric Networks in Two-Sided Markets

2009 ◽  
Vol 1 (1) ◽  
pp. 17-52 ◽  
Author(s):  
Attila Ambrus ◽  
Rossella Argenziano
Keyword(s):  
Product Differentiation ◽  
Network Externalities ◽  
The Other ◽  
Side Product ◽  
Coordination Failure ◽  
Pricing Decisions ◽  
Asymmetric Networks ◽  
Network Provider ◽  
Equilibrium Market ◽  
Two Sided Markets

This paper investigates pricing decisions and network choices in two-sided markets with network externalities. Consumers are heterogeneous in how much they value the externality. Imposing restrictions on the extent of coordination failure among consumers generates clear qualitative conclusions about equilibrium market configurations. Multiple asymmetric networks can coexist in equilibrium, both in the case of a monopolist network provider and in the case of competing providers. These equilibria have the property that one network is cheaper and larger on one side, while the other network is cheaper and larger on the other side. Product differentiation is endogenized by consumers' network choices. (JEL D85, L12, L13, L14, D42, D43)

scholarly journals Two-sided markets: An application to mobile termination in South Africa

2011 ◽  
Vol 4 (3) ◽  
pp. 183-202
Author(s):  
Nicola Theron ◽  
Johann Van Eeden
Keyword(s):  
South Africa ◽  
Market Power ◽  
The Other ◽  
Retail Market ◽  
Academic Literature ◽  
Mobile Market ◽  
Mobile Termination ◽  
Two Sided Markets

The concept of a two-sided market has received increased attention in the academic literature of late. In this paper we argue that the market for call termination is an example of a two-sided market. We apply the concepts of a two-sided termination market to the current attempts by ICASA to reduce mobile termination rates through regulation. We also deal with the concepts of significant market power (SMP) and established significant market power (ESMP), and show that the traditional thinking around market power has to be adapted when one deals with two-sided markets. More specifically, we analyse these concepts by looking at the position of Cell C, a smaller player in the mobile market in SA. We show that market power (and appropriate pro-competitive remedies) in call termination markets cannot be established without considering the origination (retail) market – the other side of the two-sided market.

scholarly journals Assessing Market Structure in Iranian Banking Sector Based on the Multiproduct Approach

2016 ◽  
Vol 11 (2) ◽  
pp. 79
Author(s):  
Kamran Mahmodpour ◽  
Mohammad Nabi Shahiki Tash ◽  
Mohammad Hassan Fotros
Keyword(s):  
Cost Saving ◽  
Market Power ◽  
Banking Sector ◽  
Structural Model ◽  
The Other ◽  
Economies Of Scope ◽  
Market Penetration ◽  
Primary Level ◽  
Basic Services ◽  
Bank Concentration

This article’s first aim is to find, the primary level of poly-product in Iranian banking section that causes the layout of the market between the banks become lower and bank concentration higher. To do that we use, the instance of Omni-product banks which is one of the most common approach developed by Penza & Rosse (1987). The first strand is related to bank cost function; and the other one to earnings multiproduct approach.In evaluating this experience-based examination and defining the effects of Omni-production on market penetration, we have applied a structural model to estimate demands on deposit services with study’s result like banks presenting traditional services such as loans and ATM cards. Additionally same modern facilities like brokerage services and capital bonds are of further market power versus those with only basic services. The economies of scope degree is sized via cost saving in scale of percentage which is produced through added figures of fruitful activities in comparison with only individual yield of product. Thus, so as to empirically distinguish economies of scope in poly-product banks, no.1 level of our investigation include modeling and speculating the function of bank’s cost.

Negative Intra Group Network Externalities in a Monopolistic Two-Sided Market

2018 ◽  
Vol 17 (2) ◽  
pp. 51-73
Author(s):  
Gokce Kurucu
Keyword(s):  
Market Structure ◽  
Network Externalities ◽  
The Other ◽  
Pricing Strategies ◽  
Market Structures ◽  
Asymmetric Pricing ◽  
Profit Maximizing ◽  
Equilibrium Market ◽  
Two Sided Markets

Abstract This paper analyzes the optimal market structures and pricing strategies of a monopolist platform in a two-sided market where the agents on each side prefer the platform to be less competitive on their side; that is, in a market with negative intra-group network externalities. Results show that the equilibrium market structure varies with the extent of negative intra-group network externalities. If the negative network externalities are substantial, that is, if an agent’s disutility due to a larger sized market on his side is high (enough), then the profit-maximizing strategy for the matchmaker will be to match the highest types of one side with all of the agents on the other side. In that case, the matchmaker will charge a high entrance fee from the former side and allow free entrance to the agents of the latter side. However, if the network externalities are not substantial, then the matchmaker will maximize profits by matching an equal number of agents from each side. This paper thus provides an explanation of the asymmetric pricing schedules in two-sided markets when the matchmaker uses a one-program pricing schedule.

scholarly journals Na3Co2(As0.52P0.48)O4(As0.95P0.05)2O7

2013 ◽  
Vol 69 (12) ◽  
pp. i85-i86 ◽  
Author(s):  
Youssef Ben Smida ◽  
Abderrahmen Guesmi ◽  
Mohamed Faouzi Zid ◽  
Ahmed Driss
Keyword(s):  
Solid State ◽  
Solid State Reaction ◽  
Title Compound ◽  
General Position ◽  
Structural Model ◽  
Three Dimensional ◽  
The Other ◽  
Coordination Polyhedra ◽  
Bond Valence Sum ◽  
Full Occupancy

The title compound, trisodium dicobalt(II) (arsenate/phosphate) (diarsenate/diphosphate), was prepared by a solid-state reaction. It is isostructural with Na3Co2AsO4As2O7. The framework shows the presence of CoX22O12(X2 is statistically disordered with As0.95P0.05) units formed by sharing corners between Co1O6octahedra andX22O7groups. These units form layers perpendicular to [010]. Co2O6octahedra andX1O4(X1 = As0.54P0.46) tetrahedra form Co2X1O8chains parallel to [001]. Cohesion between layers and chains is ensured by theX22O7groups, giving rise to a three-dimensional framework with broad tunnels, running along thea- andc-axis directions, in which the Na+ions reside. The two Co2+cations, theX1 site and three of the seven O atoms lie on special positions, with site symmetries 2 andmfor the Co,mfor theX1, and 2 andm(× 2) for the O sites. One of two Na atoms is disordered over three special positions [occupancy ratios 0.877 (10):0.110 (13):0.066 (9)] and the other is in a general position with full occupancy. A comparison between structures such as K2CdP2O7, α-NaTiP2O7and K2MoO2P2O7is made. The proposed structural model is supported by charge-distribution (CHARDI) analysis and bond-valence-sum (BVS) calculations. The distortion of the coordination polyhedra is analyzed by means of the effective coordination number.

scholarly journals Two-Sided Markets: A Tentative Survey

2005 ◽  
Vol 4 (2) ◽  
Author(s):  
Roberto Roson
Keyword(s):  
Competition Policy ◽  
Recent Literature ◽  
Network Externalities ◽  
Future Research ◽  
Two Sided Markets

A recent literature, dealing with special markets characterized by bilateral network externalities, is summarized and critically assessed. Specific features of these markets, in terms of pricing principles and externalities, are discussed first. Afterwards, several issues related to competition between platforms are considered. Finally, implications for competition policy and prospects for future research are briefly discussed.

scholarly journals Morphology, Modes of Behavior, and Measures of Market Power: A Framework for Evaluating the Impact of Industrialization of Southern Agriculture on Markets and Market Structure

1970 ◽  
Vol 2 (1) ◽  
pp. 41-45
Author(s):  
Richard A. King
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Empirical Analysis ◽  
Present State ◽  
Model Building ◽  
The Other ◽  
Agricultural Industrialization ◽  
The Arts ◽  
New Ideas ◽  
The Impact

In spite of the volume of literature produced over the years reflecting concern over the present state of the arts, the situation is likely to continue. However, there are several new ideas that offer some promise for improving our understanding and ability to project new relationships in the agribusiness sector of the Southern region.Although the title of this article implies a one-way set of forces working from agricultural industrialization to market structure, some of our colleagues regard this relationship as a two way process with forces at work in each sector having strong impacts on the other. It is these interdependencies that make the task of model building so difficult and empirical analysis so complex.

scholarly journals Moderating role of religiosity on Zakat compliance behavior in Nigeria

2018 ◽  
Vol 11 (3) ◽  
pp. 357-373 ◽  
Author(s):  
Abubakar U. Farouk ◽  
Kamil Md Idris ◽  
Ram Al Jaffri Bin Saad
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Structural Model ◽  
Reasoned Action ◽  
Theory And Practice ◽  
The Other ◽  
Equation Modeling ◽  
Predictive Capacity ◽  
Statistical Tool ◽  
Content Type

Purpose This paper examines the moderating effect of religiosity in the theory of reasoned action (TRA) on intention to comply with the Zakat on employment income (ZEI). Design/methodology/approach A survey of civil servants in Kano State, Nigeria was carried out and 474 valid observations were retrieved from the 700 distributed questionnaires. Partial least squares structural equation modeling (PLS-SEM) was used to validate the instrument that measures the variables, examined the structural model and the predictive relevance of the study’s model. Findings The results revealed the suitability of both the TRA and the PLS-SEM in the study of ZEI behavioral intention in a developing country. All the hypothesized direct relationships were supported on the one hand. On the other hand, one of the two indirect relationships, subjective norm and behavioral intention moderated by religiosity was supported, but the other tests for moderating effects of religiosity on the relationship between attitude and behavioral intention was not. Practical implications Public and private Zakat institutions in Muslim majority societies in Nigeria and in other Muslim countries may use the findings to focus their attention on the formulation of policies based on the findings of the study to strengthen eligible Zakat payers’ intention to comply to further boost their Zakat collections. Originality/value This study extends the TRA in the context of ZEI by proposing religiosity as a moderator in the predictive capacity of TRA on ZEI. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended TRA with religiosity as a moderating variable as well as its implications for theory and practice were also discussed.

scholarly journals The Challenges Faced in Technology-Driven Classes During COVID-19

2021 ◽  
Vol 19 (1) ◽  
pp. 17-39
Author(s):  
Sangeeta Sharma ◽  
Arpan Bumb
Keyword(s):  
Structural Model ◽  
Traditional Classroom ◽  
The Other ◽  
Primary Data ◽  
Ideal Solution ◽  
Computer Based Learning ◽  
Online Lectures ◽  
Order Preference ◽  
Computer Based ◽  
Interpretive Structural Model

In the wake of coronavirus pandemic, social distancing became a mandate that led to the transition from traditional classroom-based lectures to computer-based learning. This paper extensively deals with the ranking of the challenges faced by instructors and students. Primary data from 624 participants (399 students and 225 instructors) is collected through a questionnaire. To assign the ranking to the challenges, Technique of Order Preference Similarity to Ideal Solution (TOPSIS) is deployed. A contextual model is developed by using Interpretive Structural Model (ISM) technique that further provides recommendations for prioritizing the challenges that need to be addressed to mitigate the problems faced in online lectures in coronavirus situation. The number of variables is reduced to simplify the interpretation by exploratory factor analysis. The study also provides the basis to formulate the strategies for policymakers and administration after identifying which challenges need to be addressed first for mitigating all the other challenges.

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