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Shared networks and market power in two-sided markets

Juan Manuel Sánchez-Cartas () and Gonzalo Leon ()
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Juan Manuel Sánchez-Cartas: Universidad Politécnica de Madrid
Gonzalo Leon: Universidad Politécnica de Madrid

Authors registered in the RePEc Author Service: J. Manuel Sánchez-Cartas

Economics Bulletin, 2017, vol. 37, issue 3, 2173-2180

Abstract: We develop a two-sided market model with N platforms in which we compare the cases with and without shared networks. We find that, in markets with shared networks, platforms have a higher market power than in the case without shared networks. We analyze the conditions under which this behavior is profitable. Lastly, we compare our results with other works in literature, and we show that previous works are particular cases of our framework.

Keywords: Two-sided markets; Shared Networks; Market power; Lerner Index (search for similar items in EconPapers)
JEL-codes: D2 L1 (search for similar items in EconPapers)
Date: 2017-09-27
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Citations: View citations in EconPapers (1)

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