In the internet age, digital platforms are providing increasingly important settings for buyers and sellers to interact. In this video, MARTIN PEITZ investigates why some markets tend to be dominated by single platforms (e.g. Google for internet search) while others (e.g. hotel booking) allow multiple platforms to profitably co-exist. Using theoretical modeling, the research indicates that sellers in particular markets may prefer to locate themselves in distinct platforms in order to reduce the intensity of competition. Enhancing our understanding of how digital markets function, Peitz’s work provides valuable underpinning for future competition policy.
DOI:
https://doi.org/10.21036/LTPUB10633
Institution
University of Mannheim (Universität Mannheim)
For generations, the University of Mannheim has been preparing students to take on leadership roles in business, academia, and society. One of the university’s strengths in this task is its profile, which is characterized by the economic and social sciences. It is in these fields that the University of Mannheim has repeatedly been ranked as one of the top 20 European research institutions. Key focuses of Mannheim researchers include decision-making processes and elections, governance, regulation, competition and innovation, migration and multilingualism, and the culture of change. The campus surrounding Mannheim’s baroque palace is a place where bright minds from across the globe come together to learn, discuss, research, and prepare to make their mark on the world.
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Original publication
Segmentation Versus Agglomeration: Competition Between Platforms with Competitive Sellers
CEPR Discussion Paper
Published in 2017
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