Increased (Platform) Competition Reduces (Seller) Competition

Increased (Platform) Competition Reduces (Seller) Competition

• Shana Cui, University of Florida

Abstract:

Policymakers have expressed concern that a dominant online platform that acts as both a marketplace and an active seller might disadvantage its rival sellers and thereby harm consumers. I examine whether platform competition might be promoted to protect consumers. Perhaps surprisingly, I find that increased platform competition can reduce seller competition, and thereby harms consumers.

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The Friday Research Presentations series showcases ongoing academic research projects conducted by Stuart School of Business faculty and students, as well as guest presentations by Illinois Tech colleagues, business professionals, and faculty from other leading business schools.