Template-Type: ReDIF-Paper 1.0
Title: Platform Competition: Who Benefits from Multihoming?
Author-Name: Paul Belleflamme
Author-Email: Paul.Belleflamme@univ-amu.fr
Author-Name: Martin Peitz
Author-Email: Martin.Peitz@gmail.com
Classification-JEL: D43, L13, L86
Keywords: Network effects, two-sided markets, platform competition, competitive bottleneck, multihoming

Abstract: Competition between two-sided platforms is shaped by the possibility of multihoming. If
initially both sides of platform singlehome, each platform provides users on one side exclusive
access to its users on the other side. If then one side multihomes, platforms compete on the
singlehoming side and exert monopoly power on the multihoming side. This paper explores
the allocative effects of such a change from single- to multihoming. Our results challenge the
conventional wisdom, according to which the possibility of multihoming hurts the side that
can multihome, while benefiting the other side. This in not always true, as the opposite may
happen or both sides may benefit.

Note: 
Length: 24
Creation-Date: 2018-01
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp001
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_001