Merger Control on Two-Sided Markets: Is There Need for an Efficiency Defense?
28 Pages Posted: 10 Oct 2014
Date Written: September 30, 2014
We study horizontal mergers on two-sided markets between horizontally differentiated platforms. We provide a theoretical analysis of the merger’s price effect based on the amount of cost savings it generates, the behavior of outsider platforms, and the size of cross-group network effects. We point out differences as compared with the standard, one-sided merger analysis, and also discuss the merger control policy implications.
Keywords: horizontal merger, two-sided markets, cost savings, merger control
JEL Classification: L41, D82, K21
Suggested Citation: Suggested Citation