Platform Encroachment and Own-Content Bias
Platform Encroachment and Own-Content Bias
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DOI:
10.2139/ssrn.3683287
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发表时间:
2021-02
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影响因子:
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通讯作者:
Yusuke Zennyo
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文献类型:
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作者:
Yusuke Zennyo
This paper presents a model of platform encroachment, in which a platform not only acts as an intermediary between consumers and third-party sellers, but also sells its first-party products. When encroaching, the platform chooses between fair and biased search engines. Under the fair search, all products are equally likely to appear in search results, whereas the first-party product is more likely to appear under biased search. Biased encroachment makes the platform impose a lower commission on sellers, which leads to a lower equilibrium price which consequently attracts more consumers. Increased consumer participation can raise seller participation through indirect network externalities.