Collusion between two-sided platforms

Yassine Lefouili and Joana Pinho

International Journal of Industrial Organization, 2020, vol. 72, issue C

Abstract: We study the price and welfare effects of collusion between two-sided platforms and show that they depend on whether collusion occurs on both sides or a single side of the market, and whether users single-home or multi-home. Our most striking result is that one-sided collusion leads to lower (resp. higher) prices on the collusive (resp. competitive) side if the cross-group externalities exerted on the collusive side are positive and sufficiently strong. One-sided collusion may, therefore, benefit the users on the collusive side and harm the users on the competitive side. Our findings have implications regarding cartel detection and damages actions.

Keywords: Collusion; Two-sided markets; Cross-group externalities (search for similar items in EconPapers)
JEL-codes: D43 L41 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Working Paper: Collusion between two-sided platforms (2020)
Working Paper: Collusion between two-sided platforms (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:72:y:2020:i:c:s0167718720300795

DOI: 10.1016/j.ijindorg.2020.102656

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