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Managing Competition on a Two-Sided Platform

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Working paper
Paul Belleflamme, Martin Peitz
Issue number: 
AMSE Working Papers
Aix Marseille School of Economics
On many two-sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition a┬žects platform pricing, product variety, and the number of platforms that carry trade.
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