B2B marketplaces: Emergence and entry

Paul Belleflamme () and Eric Toulemonde

No 2004078, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In a successive vertical oligopoly, a set of "sellers" produce some input to be transformed into a final product by a set of "buyers". On this two-sided market, a firm's profit increases with the number of firms of the other type and decreases with the number of firms of its own type. We examine the emergence or the entry of a new marketplace sponsored by a profit-maximizing intermediary who targets buyers and sellers in sequential way by setting membership fees (or subsidies).

Keywords: two-sided markets; vertical oligopoly; B2B (search for similar items in EconPapers)
JEL-codes: L11 L13 L23 (search for similar items in EconPapers)
Date: 2004-11-01
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