Transfer Costson Platform and the"One of Two"Agreement——Analysis of Monopoly Based on Hotelling Model
As a common practice to retain users for platforms,the"Choose One out of Two"agreement is not per se ille-gal.How to identify and manage exclusive dealing monopoly is the key and difficult point of platform anti-monopoly.The switching cost is an important factors for consumers and operators to choose the cooperation platform.Constructing a plat-form model to calculate the impact of the"Choose One out of Two"agreement on the social welfare.It is found that the"Choose One out of Two"agreement constitute monopoly act only when the platform users have switching costs.At the same time,platforms that occupy a share advantage will actively give a portion of the market share to prevent excessive competition from other small platforms,and the size of the given share is positively proportional to the size of the transfer cost.In the digital platform market,the switching cost mostly exists in the form of data,and the data portability right is an effective measures to eliminate the switching cost.
platform monopolyswitching costschoose one out of two
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