Collusion and Antitrust Enforcement in Advertising-Selling Platforms

Konstantinos Charistos ()
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Konstantinos Charistos: Department of Economics, University of Macedonia

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: This paper underlines the impact of indirect network externalities on the effectiveness of antitrust enforcement to deter collusion between advertising-selling platforms. Since two-sided collusion is less likely to be sustained as consumers (e.g. readers/viewers) become more ad-avoiders while the opposite is true for one-sided collusion, firms may be induced to semi-collude (collude on advertising while competing for consumers) instead of colluding on both sides. When firms semi-collude on advertising and consumers are neutral towards advertisements, the imposition of fines based on the illegal gain of the colluding side (one-sided fines) enhances cartel deterrence compared to fines based on the total illegal profits (two-sided fines).

Keywords: Antitrust enforcement; Collusion; Media markets. (search for similar items in EconPapers)
JEL-codes: K21 L12 L41 (search for similar items in EconPapers)
Date: 2018-10, Revised 2018-10
New Economics Papers: this item is included in nep-com, nep-gth, nep-law, nep-mic and nep-pay
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Citations: View citations in EconPapers (3)

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