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Platform mergers: lessons from a case in the digital TV market

Platform mergers: lessons from a case in the digital TV market
Platform mergers: lessons from a case in the digital TV market
We contribute to the analysis of mergers in two-sided markets, in which a platform provides its service for free on one side but obtains all its revenues from the other. A structural model allowing for multi-homing of advertisers is developed to assess a decision of the French competition authority, which approves the merger of the broadcasting services of TV channels but prohibits the merger of their advertising sales services through a behavioral remedy. We show that ignoring the interaction between the two sides of platforms in designing competition or regulatory policy can result in unexpected outcomes.
0022-1821
591-630
Zhang, Jiekai
a1c30a5e-2aa1-4291-840c-e24b4455f82a
Ivaldi, Marc
dfca9665-c4dc-4fdf-b21c-34ee05f2ea12
Zhang, Jiekai
a1c30a5e-2aa1-4291-840c-e24b4455f82a
Ivaldi, Marc
dfca9665-c4dc-4fdf-b21c-34ee05f2ea12

Zhang, Jiekai and Ivaldi, Marc (2022) Platform mergers: lessons from a case in the digital TV market. Journal of Industrial Economics, 70 (3), 591-630. (doi:10.1111/joie.12274).

Record type: Article

Abstract

We contribute to the analysis of mergers in two-sided markets, in which a platform provides its service for free on one side but obtains all its revenues from the other. A structural model allowing for multi-homing of advertisers is developed to assess a decision of the French competition authority, which approves the merger of the broadcasting services of TV channels but prohibits the merger of their advertising sales services through a behavioral remedy. We show that ignoring the interaction between the two sides of platforms in designing competition or regulatory policy can result in unexpected outcomes.

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Published date: 26 March 2022

Identifiers

Local EPrints ID: 505486
URI: http://eprints.soton.ac.uk/id/eprint/505486
DOI: doi:10.1111/joie.12274
ISSN: 0022-1821
PURE UUID: 4f1dec76-189a-4235-a59a-ab5e1907ed3b
ORCID for Jiekai Zhang: ORCID iD orcid.org/0009-0001-2242-9209

Catalogue record

Date deposited: 09 Oct 2025 17:03
Last modified: 10 Oct 2025 02:16

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Contributors

Author: Jiekai Zhang ORCID iD
Author: Marc Ivaldi

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