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Upward Price Pressure in Two-Sided Markets: Incorporating Feedback Effects

Andreea Cosnita-Langlais, Bjørn Olav Johansen and Lars Sørgard

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Abstract: In two-sided markets it is important to consider feedback effects following a merger, i.e. how a price change on one side of the market affects the price change on the other side of the market. Affeldt et al. (2013) introduced the Upward Pricing Pressure (UPP) for two-sided markets, and we extend their approach to take into account such feedback effects. We then discuss the implications of our results for the assessment of two-sided mergers.

Keywords: merger assessment; two-sided markets; Upward Pricing Pressure (search for similar items in EconPapers)
Date: 2018
Note: View the original document on HAL open archive server: https://hal.science/hal-04141797
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