Platform Mergers: Lessons from a Case in the Digital TV Market
Marc Ivaldi and
Jiekai Zhang
Journal of Industrial Economics, 2022, vol. 70, issue 3, 591-630
Abstract:
We contribute to the analysis of mergers in two‐sided markets, in which a platform provides its service for free on one side but obtains all its revenues from the other. A structural model allowing for multi‐homing of advertisers is developed to assess a decision of the French competition authority, which approves the merger of the broadcasting services of TV channels but prohibits the merger of their advertising sales services through a behavioral remedy. We show that ignoring the interaction between the two sides of platforms in designing competition or regulatory policy can result in unexpected outcomes.
Date: 2022
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https://doi.org/10.1111/joie.12274
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:70:y:2022:i:3:p:591-630
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