American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Platform Governance
American Economic Journal: Microeconomics
vol. 14,
no. 3, August 2022
(pp. 213–54)
Abstract
Platforms that intermediate trades—such as Amazon, Airbnb, and eBay—play a regulatory role in deciding how to govern the marketplaces they create. We propose a framework to analyze a platform's nonprice governance design and its incentive to act in a welfare-enhancing manner. We show that the platform's governance design can be distorted toward inducing insufficient or excessive seller competition, depending on the nature of the fee instrument employed by the platform. These results are illustrated with micro-founded applications to a platform's control over seller entry, information provision and recommendations, quality standards, and search-design choices.Citation
Teh, Tat-How. 2022. "Platform Governance." American Economic Journal: Microeconomics, 14 (3): 213–54. DOI: 10.1257/mic.20190307Additional Materials
JEL Classification
- D21 Firm Behavior: Theory
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- L15 Information and Product Quality; Standardization and Compatibility
- L23 Organization of Production
- L81 Retail and Wholesale Trade; e-Commerce
- M37 Advertising
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