Can social media platforms charge their users?

被引:3
作者
Mishra, Soumya Kanta [1 ,2 ]
Sarkar, Sumit [1 ,2 ]
机构
[1] Xavier Sch Management, Circuit House Area East, Jamshedpur 831001, Jharkhand, India
[2] XLRI Xavier Sch Management, Jamshedpur, India
关键词
Social media; Platform competition; Horizontal differentiation; Network effect; Advertisement nuisance; Multihoming;
D O I
10.1016/j.econlet.2023.111415
中图分类号
F [经济];
学科分类号
02 ;
摘要
Traditionally social media platforms offered free service to users. The recent implementation of the pay-for -subscription model by some social media platforms motivated us to examine the equilibrium conditions under which the platforms can charge users. We model price competition between two horizontally differentiated platforms that can charge both the advertisers and users. The main results are: (i) Sufficiently strong platform preferences of the users enable the platforms to charge the users when they singlehome; (ii) Independent of parameter conditions, the platforms can charge the users when they multihome and advertisers singlehome.
引用
收藏
页数:4
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