Should vertically integrated platforms be mandated to share information with their rivals?

• Type: Article in International Scientific Journal
• Date: 2021

Authors

Padilla, J (Author) Other; Piccolo, S (Author) Other; Helder Vasconcelos (Author) FEP

Journal

Title: Economics Letters

Vol. 203

ISSN: 0165-1765

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 1 Citation

Scopus - 1 Citation

Other information

Authenticus ID: P-00T-S1X

DOI: 10.1016/j.econlet.2021.109849

Abstract (EN): We examine a vertically integrated platform's incentives to share demand information with a 'thirdparty' seller. When consumers perceive the platform's private label and the seller's products as relatively close substitutes, and quality strongly affects demand, the platform tends not to share information with the seller. We find that consumers are often better off without information sharing even in the absence of explicit privacy concerns, since information sharing facilitates rent extraction via targeted prices. The region of parameters where this occurs expands as the platform's bargain power vis-a-vis the seller increases.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 7