DeFiPP Research Seminar-Federico Etro (University of Florence, crai)
Hybrid Marketplaces with Free Entry of Sellers
Date : 04/10/2022 16:00 - 04/10/2022 17:15
Lieu : Distantiel par Teams
Orateur(s) : Federico Etro
Organisateur(s) : Christian Kiedaisch
Abstract
We study a hybrid marketplace such as Amazon selling its own products and setting commissions on sellers engaged in monopolistic competition with free entry. For
a large class of microfoundations based on a representative agent, the introduction of products by the marketplace is neutral on consumer welfare for a given commission,
but exerts an ambiguous impact through its changes: a demand substitution mechanism pushes for a higher commission, but an extensive margin mechanismpushes
for a lower commission aimed at attracting new sellers and more purchases on the marketplace. With constant demand elasticities, a hybrid marketplace sets a lower
(higher) commission rate and increases (decreases) consumer welfare compared to a pure marketplace if its products face a less (more) elastic demand.
Télecharger :
vCal