Template-Type: ReDIF-Paper 1.0
Title: The Tension Between Market Shares and Profit Under Platform Competition
Author-Name: Paul Belleflamme
Author-Email: Paul.Belleamme@uclouvain.be
Author-Name: Martin Peitz
Author-Email: Martin.Peitz@gmail.com
Author-Name: Eric Toulemonde
Author-Email: Eric.Toulemonde@unamur.be

Classification-JEL: D43, L13, L86
Keywords: Two-sided platforms, market share, market power, oligopoly, network effects, antitrust

Abstract: We introduce asymmetries across platforms in the linear model of competing two-sided platforms with singlehoming on both sides and fully characterize the price equilibrium. We identify market environments in which one platform has a larger market share on both sides while obtaining a lower profit than the other platform. This platform enjoys a competitive advantage on one or both sides. Our finding raises further doubts on using market shares as
a measure of market power in platform markets. 

Note: 
Length: 17
Creation-Date: 2020-08
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp204
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_204v2