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Hybrid Platform Model

Departmental Seminar

Add to calendar 2022-10-04 14:00 2022-10-04 15:15 Europe/Rome Hybrid Platform Model Seminar Room 3rd Floor Villa La Fonte YYYY-MM-DD


04 October 2022

14:00 - 15:15 CEST


Seminar Room 3rd Floor

Villa La Fonte

In this seminar, Özlem Bedre-Defolie (ESMT Berlin) will present the paper "Hybrid Platform Model".

We provide a canonical and tractable model of a trading platform which controls the product variety it hosts and product prices by charging a percentage fee on sellers and choosing whether to sell its own product (hybrid mode). We micro-found and derive a mixed market demand system for differentiated products to capture interactions between monopolistically competitive sellers and a sizeable range of platform products. The hybrid platform steers consumers towards its products by charging higher seller fees than pure marketplace. This "insidious steering" intensifies the better the platform's own products. Banning hybrid mode benefits consumers if and only if the ban leads to pure marketplace. The hybrid platform debases third-party products if its products are strong enough. We capture two-sided network effects by endogenizing buyer participation via costs to discover tastes for products and seller participation via an aggregate manipulated by the platform’s fee.

Co-author: Simon Anderson

The seminar will be a HYBRID EVENT and will also be streamed via Zoom.


Professor Özlem Bedre-Defolie (ESMT Berlin)

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