Bontems, PhilippeIdRef, Hamilton, Stephen F. and Lepore, Jason J.IdRef (2025) Sequential pricing on multisided platforms. TSE Working Paper, n. 25-1658, Toulouse

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Abstract

Multisided platforms have emerged as an increasingly important market structure with the rise of the digital economy. In this paper, we consider sequential price setting behavior by platforms and demonstrate sequential pricing outcomes Pareto dominate simultaneous pricing outcomes in terms of firm and industry profits. We compare policy implications and find prices are more balanced across the platform and average prices are higher under sequential pricing than under simultaneous pricing. We also demonstrate that pricing power can be considered independently on each side of the market under multihoming behavior.

Item Type: Monograph (Working Paper)
Language: English
Date: July 2025
Place of Publication: Toulouse
Uncontrolled Keywords: Network Effects, Two-Sided Markets, Platform Competition
JEL Classification: D43 - Oligopoly and Other Forms of Market Imperfection
L13 - Oligopoly and Other Imperfect Markets
L40 - General
L86 - Information and Internet Services; Computer Software
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 26 Sep 2025 07:34
Last Modified: 26 Sep 2025 07:38
OAI Identifier: oai:tse-fr.eu:130858
URI: https://publications.ut-capitole.fr/id/eprint/51114
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