Abstract: This paper examines optimal managerial decisions in markets where goods may be distributed directly by their producers and/or by an intermediary akin to an online platform. We characterize the optimal design of the platforms’ trading strategy, under two distinct business models: a marketplace mode and a reselling model. Then, we identify under which conditions the marketplace model is more profitable than the reselling model, assuming that the platform has an informational advantage over manufacturers due to its superior information (Big Data...
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Topics: 
Commerce
Microeconomics
Industrial organization