Martin Peitz Can Multiple Platforms Profitably Co-Exist in Digital Markets?
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.
LT Video Publication DOI: https://doi.org/10.21036/LTPUB10633
Segmentation Versus Agglomeration: Competition Between Platforms with Competitive Sellers
- Heiko Karle, Martin Peitz and Markus Reisinger
- CEPR Discussion Paper
- Published in 2017