Collusion between non-differentiated two-sided platforms

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 215
Issue: C

Authors (2)

Peitz, Martin (Universität Mannheim) Samkharadze, Lily (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Platform competition can be intense when offering non-differentiated services. However, competition is somewhat relaxed if platforms cannot set negative prices. If platforms collude they may be able to implement the outcome that maximizes industry profits. In an infinitely repeated game with perfect monitoring, this is feasible if the discount factor is sufficiently large. When this is not possible, under some condition, a collusive outcome with one-sided rent extraction along the equilibrium path can be sustained that leads to higher profits than the non-cooperative outcome.

Technical Details

RePEc Handle
repec:eee:ecolet:v:215:y:2022:i:c:s0165176522001306
Journal Field
General
Author Count
2
Added to Database
2026-01-28