Estimating Demand with Multi-Homing in Two-Sided Markets

Quaderni - Working Paper DSE N° 1165

46 Pages Posted: 28 Sep 2021

See all articles by Pauline Affeldt

Pauline Affeldt

German Institute for Economic Research (DIW Berlin); Technische Universität Berlin (TU Berlin)

Elena Argentesi

University of Bologna - Department of Economics

Lapo Filistrucchi

Tilburg University, TILEC; University of Florence, Dipartimento di Scienze Economiche

Multiple version iconThere are 2 versions of this paper

Date Written: August 18, 2021

Abstract

We empirically investigate the relevance of multi-homing in two-sided markets. First, we build a micro-founded structural econometric model that encompasses demand for differentiated products and allows for multi-homing on both sides of themarket. We then use an original dataset on the Italian daily newspaper market that includes information on double-homing by readers to estimate readers’ and advertisers’ demand. The results show that an econometric model that does not allow for multi-homing is likely to produce biased estimates of demand on both sides of the market. In particular, on the reader side, accounting for multi-homing helps to recognize complementarity between products; on the advertising side, it allows to measure to what extent advertising demand depends on the shares of exclusive and overlapping readers.

Keywords: two-sided markets, platforms, multi-homing, media, advertising

JEL Classification: C51, D43, L13, L82, M37

Suggested Citation

Affeldt, Pauline and Argentesi, Elena and Filistrucchi, Lapo and Filistrucchi, Lapo, Estimating Demand with Multi-Homing in Two-Sided Markets (August 18, 2021). Quaderni - Working Paper DSE N° 1165, Available at SSRN: https://ssrn.com/abstract=3932240 or http://dx.doi.org/10.2139/ssrn.3932240

Pauline Affeldt (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

Elena Argentesi

University of Bologna - Department of Economics ( email )

Piazza Scaravilli 2
Bologna, BO 40141
Italy
+39 051 209 2664 (Phone)
+39 051 209 8040 (Fax)

HOME PAGE: http://https://www.unibo.it/sitoweb/elena.argentesi/en

Lapo Filistrucchi

Tilburg University, TILEC ( email )

P.O. Box 90153
Tilburg, Noord-Brabant NL-5000 LE
Netherlands
+31 13 466 3360 (Phone)
+31 13 466 3042 (Fax)

HOME PAGE: http://www.lapofilistrucchi.com

University of Florence, Dipartimento di Scienze Economiche ( email )

via delle Pandette 9
Florence, Florence IT-50127
Italy
+39 055 2759579 (Phone)
+39 055 2759910 (Fax)

HOME PAGE: http://www.lapofilistrucchi.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
51
Abstract Views
208
rank
390,540
PlumX Metrics