Joint-purchase benefits as an anti-steering device of platforms

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

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

This study develops a stylized model in which a cross-market complementarity (e.g., volume discounts or rewards across categories) provided by a platform plays a role of anti-steering device. The complementarity across markets locks consumers into the platform and makes it hard for individual third-party sellers to divert consumers to direct channels. Accordingly, the platform can profitably raise the commission by increasing the cross-market complementarity. The platform’s incentive to invest in cross-market complementarity is excessive. The application to cross-market merger shows that a merger that generates a cross-market synergy may be harmful to consumers and welfare.

Technical Details

RePEc Handle
repec:eee:ecolet:v:215:y:2022:i:c:s016517652200129x
Journal Field
General
Author Count
1
Added to Database
2026-01-29