Please use this identifier to cite or link to this item:
https://doi.org/10.1111/1756-2171.12408
Title: | Should platforms be allowed to sell on their own marketplaces? | Authors: | Hagiu, A Teh, TH Wright, J |
Issue Date: | 1-Jun-2022 | Publisher: | Wiley | Citation: | Hagiu, A, Teh, TH, Wright, J (2022-06-01). Should platforms be allowed to sell on their own marketplaces?. RAND Journal of Economics 53 (2) : 297-327. ScholarBank@NUS Repository. https://doi.org/10.1111/1756-2171.12408 | Abstract: | A growing number of digital platforms operate in a dual mode: running marketplaces for third-party products, while selling their own products on those marketplaces. We build a model to explore the implications of this controversial practice. We analyze the tradeoffs that arise from a regulatory ban on the dual mode, showing how such a ban can harm consumer surplus and welfare even when the platform would otherwise engage in product imitation and self-preferencing. In the empirically most relevant scenarios, policies that prevent platform imitation and self-preferencing generate better outcomes than an outright ban on the dual mode. | Source Title: | RAND Journal of Economics | URI: | https://scholarbank.nus.edu.sg/handle/10635/246872 | ISSN: | 0741-6261 1756-2171 |
DOI: | 10.1111/1756-2171.12408 |
Appears in Collections: | Staff Publications Elements |
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Accepted version 2021.pdf | Accepted version | 822.34 kB | Adobe PDF | OPEN | Post-print | View/Download |
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