Welfare Effects of Socially Conscious Platforms in Two-Sided Markets
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Hayama Abe
Abstract
This note presents a model of platform competition in a two-sided market, with one competing platform pursuing not only its own profit but also consumer surplus. We investigate how the presence of such a socially conscious platform affects market competition. Results indicate that greater emphasis as an objective put on consumer surplus by the socially conscious platform leads to higher market share. Creation of a larger network enhances the total benefits associated with indirect network externalities in the two-sided market. When the extent of indirect network externalities is sufficiently strong, increased network benefits can improve social welfare. By contrast, if indirect network externalities are weak, then the socially conscious platform might be detrimental to society.
Funding source: Japan Society for the Promotion of Science
Award Identifier / Grant number: 20H01551
Award Identifier / Grant number: 22H00043
Acknowledgment
The authors are grateful to Editor-in-Chief Till Requate for his constructive comments.
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Research funding: This work was partially supported by JSPS KAKENHI Grant Numbers 20H01551 and 22H00043. The usual disclaimers apply.
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Artikel in diesem Heft
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Artikel in diesem Heft
- Frontmatter
- Research Articles
- Political Commitment, Policy Consequences, and Moral Beliefs: Survey Evidence on the Minimum Wage
- Managerial Delegation, Product R&D and Subsidies on R&D Investment Costs
- Counterfactual Decomposition of Health Care Expenditures: From Cost-Based Payment to a Global Budget System
- Legalizing Harmful Drugs: Government Participation and Optimal policies
- Subsidized Crop Insurance under Limited Access to Incomplete Financial Markets
- Network Effect, Business Dynamism and Wage Inequality in a Sharing Economy
- Letters
- Global Politico-Economic Dynamics during a Local Conflict: Reciprocal Patterns of Cooperation and Sanctions
- Welfare Effects of Socially Conscious Platforms in Two-Sided Markets
- Private Benefits of Control and the Core
- What is the Short-Term Impact of Decreasing the Speed Limit for Motor Vehicles on Bicycle Commuting? Evidence from French Cities during Covid-19 Pandemic
- Gone with the Flood: Natural Disasters and Children’s Schooling in Pakistan
- Major-Occupation Match Quality: An Empirical Measure Based on Relative Productivity
