Platform Mergers: Lessons from a Case in the Digital TV Market

Marc Ivaldi*, Jiekai Zhang

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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 languageEnglish
Peer-reviewed scientific journalThe Journal of Industrial Economics
ISSN0022-1821
DOIs
Publication statusPublished - 26.03.2022
MoE publication typeA1 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

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