Exclusivity and exclusion on platform markets

Subhashish Chowdhury and Stephen Martin ()
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Subhashish Chowdhury: Department of Economics and CBESS, University of East Anglia

No 10-14, Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 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: 2010-09-01
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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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