We study platforms setting access prices and commissions on revenues of sellers engaged in monopolistic competition with free entry, such as the app providers on the app stores of Apple and Android devices. The link between prices on different sides induces the plat-forms to redistribute all the commission revenues through lower access prices and to set the optimal commission rates from the point of view of consumers, taking into account the pass-through on the prices of sellers, the elasticities of demand and surplus for their services and the elasticity of entry with respect to profitability. We discuss the role of het-erogeneous sellers, substitutability between sellers's products and limitations of the basic alignment of interest due to direct channels for sellers and consumer myopia.& COPY; 2022 The Author. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ )

Platform competition with free entry of sellers / Etro F.. - In: INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION. - ISSN 0167-7187. - STAMPA. - 89:(2023), pp. 102903.1-102903.30. [10.1016/j.ijindorg.2022.102903]

Platform competition with free entry of sellers

Etro F.
2023

Abstract

We study platforms setting access prices and commissions on revenues of sellers engaged in monopolistic competition with free entry, such as the app providers on the app stores of Apple and Android devices. The link between prices on different sides induces the plat-forms to redistribute all the commission revenues through lower access prices and to set the optimal commission rates from the point of view of consumers, taking into account the pass-through on the prices of sellers, the elasticities of demand and surplus for their services and the elasticity of entry with respect to profitability. We discuss the role of het-erogeneous sellers, substitutability between sellers's products and limitations of the basic alignment of interest due to direct channels for sellers and consumer myopia.& COPY; 2022 The Author. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ )
2023
89
1
30
Goal 9: Industry, Innovation, and Infrastructure
Etro F.
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Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/1361001
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