Presenting “Superstars in two-sided markets: exclusives or not?” at 12:15-13:30 in QA405.
PLEASE MIND OUR NEW VENUE FOR THIS YEAR!
On 30th October 2019, we have Elias Carroni of Università di Bologna visiting us. He is going to give a seminar titled “Superstars in two-sided markets: exclusives or not?” at 12:15-13:30 in room A405 in Building Q, Budapest University of Technology and Economics, Faculty of Economic and Social Sciences, Magyar tudósok körútja 2, 1117 Budapest. Sandwiches will be provided. Please register. Also, see our Facebook event.
Abstract: This article studies incentives for a premium provider (Superstar) to offer exclusive contracts to competing platforms mediating the interactions between consumers and firms. When platform competition is intense, more consumers subscribe to the platform hosting the Superstar exclusively. This mechanism is self-reinforcing as firms follow consumer decisions and (some) join exclusively the platform with the Superstar. Exclusivity always benefits firms and may benefit consumers. Moreover, when the Superstar is integrated with a platform, non-exclusivity becomes more likely than if the Superstar was independent. This analysis provides several implications for managers and policy makers operating in digital and traditional markets.