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- W3140116971 abstract "In light of recent trends in social networking services that encourage users of platforms to “share,” “recommend,” and “do activities” with others, this work analyzes platform competition in two-sided markets that exhibit direct (or within-) network effect in addition to conventional cross-network effect. Introduction of direct network effect to one group (buyer-side) in a two-sided market generates two counter-acting effects: demand-augmenting effect and demand-sensitizing effect. The former allows platforms to raise buyer-side price, thereby increasing the sum of prices charged to buyers and sellers, whereas the latter causes platforms to lower them. I show that demand-augmenting effect dominates demand-sensitizing effect under the monopoly platform, whereas introducing competition between platforms under sufficient direct network effect relatively strengthens the demand- sensitizing effect, which lowers the price charged to buyers." @default.
- W3140116971 created "2021-04-13" @default.
- W3140116971 creator A5058356894 @default.
- W3140116971 date "2016-08-30" @default.
- W3140116971 modified "2023-09-23" @default.
- W3140116971 title "Competition in Two-Sided Platform Markets with Direct Network Effect" @default.
- W3140116971 hasPublicationYear "2016" @default.
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