Exclusivity and Exclusion on Platform Markets

Subhasish Chowdhury and Steven Martin
Additional contact information
Steven Martin: Purdue University

No 16, University of East Anglia Applied and Financial Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK.

Abstract: We examine conditions under which a platform firm can exclude rivals by bundling a product that some on one side of the market regard as essential with its platform, and pursue implications for market performance. We show that the impact of an exclusive dealing contract between the upstream firm and one of the downstream firms on market performance depends on the strength of consumer preferences for the products of the two downstream firms and the relative size of the market segment for which the complementary consumption good is essential. In some cases this may reduce the net social welfare.

Keywords: exclusion; essential components; exclusive contract; platform market. (search for similar items in EconPapers)
JEL-codes: L12 L13 L22 L42 (search for similar items in EconPapers)
Date: 2010-09-21
New Economics Papers: this item is included in nep-com and nep-tid
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Exclusivity and exclusion on platform Markets (2017)
Working Paper: Exclusivity and Exclusion on Platform Markets (2010)
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