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Juan Manuel Sánchez-Cartas and Gonzalo Leon
''Shared networks and market power in two-sided markets''
( 2017, Vol. 37 No.3 )
We develop a two-sided market model with N platforms in which we compare the cases with and without shared networks. We find that, in markets with shared networks, platforms have a higher market power than in the case without shared networks. We analyze the conditions under which this behavior is profitable. Lastly, we compare our results with other works in literature, and we show that previous works are particular cases of our framework.
Keywords: Two-sided markets, Shared Networks, Market power, Lerner Index
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D2 - Production and Organizations: General
Manuscript Received : Feb 12 2017 Manuscript Accepted : Sep 27 2017

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