Optimal Pricing of a Duopoly Platform with Two-Sided Congestion Effect
Journal of Research in Industrial Organization
We study, in this paper, the impact of two-sided congestion effect on the pricing policy of a two-sided duopoly platform. Relative to Armstrong (2006), we show that, with congestion effect, (i) competition for submarket share is softened, (ii) the divide-and-conquer pricing strategy is modified insofar…