Abstract
We contribute to the analysis of mergers in two-sided markets, in which a platform provides its service for free on one side but obtains all its revenues from the other. A structural model allowing for multi-homing of advertisers is developed to assess a decision of the French competition authority, which approves the merger of the broadcasting services of TV channels but prohibits the merger of their advertising sales services through a behavioral remedy. We show that ignoring the interaction between the two sides of platforms in designing competition or regulatory policy can result in unexpected outcomes.
Original language | English |
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Peer-reviewed scientific journal | The Journal of Industrial Economics |
Volume | 70 |
Issue number | 3 |
Pages (from-to) | 591-630 |
Number of pages | 40 |
ISSN | 0022-1821 |
DOIs | |
Publication status | Published - 26.03.2022 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 511 Economics
Areas of Strength and Areas of High Potential (AoS and AoHP)
- AoS: Competition economics and service strategy - Quantitative consumer behaviour and competition economics