Sequential pricing on multisided platforms

Philippe Bontems, Stephen F. Hamilton and Jason Lepore

No 25-1658, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: Multisided platforms have emerged as an increasingly important market structure with the rise of the digital economy. In this paper, we consider sequential price setting behavior by platforms and demonstrate sequential pricing outcomes Pareto dominate simultaneous pricing outcomes in terms of firm and industry profits. We compare policy implications and find prices are more balanced across the platform and average prices are higher under sequential pricing than under simultaneous pricing. We also demonstrate that pricing power can be considered independently on each side of the market under multihoming behavior.

Keywords: Network Effects; Two-Sided Markets; Platform Competition (search for similar items in EconPapers)
JEL-codes: D43 L13 L40 L86 (search for similar items in EconPapers)
Date: 2025-07
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic, nep-pay and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:130858

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