We examine a vertically integrated platform's incentives to share demand information with a ‘third-party’ seller. When consumers perceive the platform's private label and the seller's products as relatively close substitutes, and quality strongly affects demand, the platform tends not to share information with the seller. We find that consumers are often better off without information sharing even in the absence of explicit privacy concerns, since information sharing facilitates rent extraction via targeted prices. The region of parameters where this occurs expands as the platform's bargain power vis-à-vis the seller increases.

(2021). Should vertically integrated platforms be mandated to share information with their rivals? [journal article - articolo]. In ECONOMICS LETTERS. Retrieved from http://hdl.handle.net/10446/228194

Should vertically integrated platforms be mandated to share information with their rivals?

Piccolo, Salvatore;
2021-01-01

Abstract

We examine a vertically integrated platform's incentives to share demand information with a ‘third-party’ seller. When consumers perceive the platform's private label and the seller's products as relatively close substitutes, and quality strongly affects demand, the platform tends not to share information with the seller. We find that consumers are often better off without information sharing even in the absence of explicit privacy concerns, since information sharing facilitates rent extraction via targeted prices. The region of parameters where this occurs expands as the platform's bargain power vis-à-vis the seller increases.
articolo
9-apr-2021
2021
Inglese
online
203
Art. n. 109849
1
7
esperti anonimi
Settore SECS-P/01 - Economia Politica
Consumer data; Information sharing; Price discrimination; Product quality; Vertically integrated platforms;
Padilla, Jorge; Piccolo, Salvatore; Vasconcelos, Helder
info:eu-repo/semantics/article
reserved
(2021). Should vertically integrated platforms be mandated to share information with their rivals? [journal article - articolo]. In ECONOMICS LETTERS. Retrieved from http://hdl.handle.net/10446/228194
Non definito
3
1.1 Contributi in rivista - Journal contributions::1.1.01 Articoli/Saggi in rivista - Journal Articles/Essays
262
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/228194
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