Platform Pricing under Dispersed Information

Bruno Jullien and Alessandro Pavan

No 793, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: We study monopoly and duopoly pricing in a two-sided market with dispersed information about users' preferences. We first show how the dispersion of information introduces idiosyncratic uncertainty about participation rates and how the latter shapes the elasticity of the demands and thereby the equilibrium prices. We then study informative advertising campaigns and product design affecting the agents' ability to estimate their own valuations and/or the distribution of valuations on the other side of the market.

Keywords: two-sided markets; dispersed information; platform competition; global-games; informative advertising (search for similar items in EconPapers)
JEL-codes: D82 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-com, nep-cta, nep-mic, nep-mkt and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Platform Pricing under Dispersed Information (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:27580

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