Dynamic platform competition 'In' and 'For' the market

Concurrence dynamique entre plateformes « dans » et « pour » le marché

Axel Gautier () and Jean-Christophe Poudou
Additional contact information
Axel Gautier: HEC Liège

Working Papers from HAL

Abstract: In many industries, platforms compete with incumbents that are open to all consumers, whereas platforms require user affiliation. Consequently, platforms face two layers of competition: for the market, to attract users, and in the market, to compete with incumbents. We develop a dynamic model integrating these layers, showing that as platform affiliation grows, in the market competition intensifies, pushing incumbents toward more aggressive pricing. Conversely, for the market competition diminishes, reducing the platform's incentive to compete aggressively. This interplay generates dynamic pricing behavior that can be non-monotonic over time, capturing the shifting incentives driving platform-incumbent competition across both dimensions.

Keywords: Platform competition; Uber Economy; Competition for the market; Market affiliation (search for similar items in EconPapers)
Date: 2025-10-22
Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-05362553v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.umontpellier.fr/hal-05362553v1/document (application/pdf)

Related works:
Working Paper: Dynamic Platform Competition 'In' and 'For' the Market (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-05362553

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().