• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Introduction
      • A bird’s eye view: oligopoly with consumption externalities
      • A toy model of a platform
      • A richer model: diverse groups of platform consumers
      • Rich heterogeneity within groups
      • Modelling platform competition: challenges and proposed solutions
      • Detailed views of interaction on and via online platforms
      • Sponsored search auctions
      • Price competition and obfuscation
      • Further issues
      • Acknowledgements
    • See Also
    • Bibliography
    • How to cite this article

online platforms, economics of

Alexander White
From The New Palgrave Dictionary of Economics, Online Edition, 2012
Edited by Steven N. Durlauf and Lawrence E. Blume
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Following the Internet’s widespread adoption, much economic work has studied ‘online platforms’: firms that mainly interact with consumers in cyberspace. This article surveys such work, focusing on the ways in which traditional economic models have been adapted to incorporate novel aspects made relevant by the Internet. This literature can be divided roughly into two categories: broad-brush study of the competition between platforms and more fine-grained study of the ways in which users and platforms interact with one another. The former focuses on extending oligopoly theory to include ‘consumption externalities’; the latter extends auction and search theory to a world of precisely measureable actions.
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How to cite this article

White, Alexander. "online platforms, economics of." The New Palgrave Dictionary of Economics. Online Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2012. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 17 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2012_O000112> doi:10.1057/9780230226203.3885

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