Negative intra-group externalities in two-sided markets
(2007)
Files
COREDP2007_39.pdf
Open Access - Adobe PDF
- 317.85 KB
Details
- Authors
- Abstract
- Two types of agents interact on a pre-existing free platform. Agents value positively the presence of agents of the other type but may value negatively the presence of agents of their own type. We ask whether a new platform can find fees and subsidies so as to divert agents from the existing platform and make a profit. We show that this might be impossible if intra-group negative externalities are sufficiently (but not too) strong with respect to positive inter-group externalities.
- Affiliations
Citations
Belleflamme, P., & Toulemonde, E. (2007). Negative intra-group externalities in two-sided markets (CORE Discussion Papers 2007/39). https://hdl.handle.net/2078.5/42201