Resale Price Maintenance In Two‐Sided Markets

A-Tier
Journal: Journal of Industrial Economics
Year: 2018
Volume: 66
Issue: 3
Pages: 570-609

Authors (3)

Tommy Staahl Gabrielsen (Universitetet i Bergen) Bjørn Olav Johansen (not in RePEc) Teis Lunde Lømo (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

We consider competing two‐sided platforms selling directly to one side of the market, and through an agent to the other side. Platforms offer nonlinear tariffs, and can choose whether to contract with the same or different agents. We study the platforms’ incentives to impose resale price maintenance (RPM), and the effect on end customers. We find that, even if customers on both sides value each other's participation, platforms impose minimum RPM to raise prices on both sides simultaneously if platform competition is sufficiently strong. In a linear demand example, we find that overall welfare decreases with minimum prices and increases with maximum prices.

Technical Details

RePEc Handle
repec:bla:jindec:v:66:y:2018:i:3:p:570-609
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25