The DOI matches its Crossref record; 16 of the 17 references it cites were found in a registry or an index.
Chicken & Egg: Competition among Intermediation Service Providers
Abstract
We analyze a model of imperfect price competition between intermediation service providers. We insist on features that are relevant for informational intermediation via the Internet: the presence of indirect network externalities, the possibility of using the nonexclusive services of several intermediaries, and the widespread practice of price discrimination based on users' identity and on usage. Efficient market structures emerge in equilibrium, as well as some specific form of inefficient structures. Intermediaries have incentives to propose non-exclusive services, as this moderates competition and allows them to exert market power. We analyze in detail the pricing and business strategies followed by intermediation services providers. Copyright 2003 by the RAND Corporation.
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“Caillaud and Jullien (2003) show how an entering platform can use price discrimination to be successful even when market participants expect the entrant to fail.”
From The Economics of Two-Sided Markets (2009) · cites this paper as Caillaud and Jullien (2003)
In the citing paper
“It is also challenged to attract a viable number of users on the respective sides of the platform to overcome the chicken and egg problem (Caillaud & Jullien, 2003).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Caillaud & Jullien, 2003
In the citing paper
“In many platforms, at least one side of the platform must be subsidized to overcome the chicken and egg problem (Caillaud & Jullien, 2003;Hagiu, 2006) and enable growth and subsequent adoption on the other side.”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Caillaud & Jullien, 2003
In the citing paper
“During digital platform formation, the focal platform firm focuses on establishing a platform-based product or service, creating fundamental technologies, and attracting users on various sides of the platform (Caillaud & Jullien, 2003;Hagiu, 2006).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Caillaud & Jullien, 2003
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Metadata
- Authors
- Caillaud, B., & Jullien, B.
- Affiliations
- École nationale des ponts et chaussées (FR)
- ORCID
- Jullien, Bruno
- Venue
- The RAND Journal of Economics
- Publisher
- Wiley
- Published
- 2003
- Volume
- 34
- Issue
- 2
- Pages
- 309
- ISSN
- 0741-6261 (ISSN-L)
- OpenAlex
- W2008975493
- Cited by
- 1,799
- References
- 17
- Citations by year
- 2026: 74 · 2025: 110 · 2024: 97 · 2023: 107 · 2022: 113 · 2021: 119 · 2020: 143 · 2019: 108 · 2018: 106 · 2017: 59 · 2016: 79 · 2015: 75 · 2014: 80 · 2013: 88 · 2012: 74
- FWCI
- 96.33
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The RAND Journal of Economics (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › ICT Impact and Policies
- Keywords
- price competition, indirect network externalities, price discrimination, market power, market structure, pricing strategy, business strategy
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