Price Parity Clauses and platform data acquisition

Andreea Enache and Andrew Rhodes
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Andreea Enache: SSE - Stockholm School of Economics
Andrew Rhodes: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: Many platforms use Price Parity Clauses (PPCs) to prevent sellers charging lower prices elsewhere. In a setting where PPCs affect platforms' data acquisition, we show that buyers and sellers may benefit from PPCs when the market is young.

Keywords: Product discovery; Data; Platforms; Price parity clauses (search for similar items in EconPapers)
Date: 2025-10
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Published in Economics Letters, 2025, 256, pp.112635. ⟨10.1016/j.econlet.2025.112635⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05294331

DOI: 10.1016/j.econlet.2025.112635

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