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We analyze a problem where a market maker on behalf of buyers allocates a given amount of order among N suppliers each with finite capacity. Specifically, we analyze a situation in which suppliers have the option of going to open market and selling their capacity at a market price. However, the supplier will incur search costs. Moreover, the demand for the supplier capacity in the open market i...

The subscription covering optimization, whereby a general subscription quenches the forwarding of more specific ones, is a common technique to reduce network traffic and routing state in content-based routing networks. Such optimizations, however, leave the system vulnerable to unsubscriptions that trigger the immediate forwarding of all the subscriptions they had previously quenched. These sub...

We consider a manufacturer’s new market entry problem when it already has some established facility in its existing market. We consider two common market entry strategies: the export strategy and the foreign direct investment (FDI) strategy. In the export strategy the firm increases the capacity at its existing facility and subsequently allocates the output to the existing and the new market dy...

We consider a market where consumers mix goods offered by two firms differentiated a la Hotelling, and show how tariff structures affect consumers, profits, and location decisions. As compared to linear pricing, when firms charge two-part tariffs they make higher profits while consumers are worse off. The resulting allocation is not efficient since firms choose extreme locations and too little ...

As emphasised in a series of recent articles (2), the two(or multi-)sided nature of a market should explicitly be considered in evaluating the existence and magnitude of possible anti-competitive effects. However, the relevance of the two-sided nature of markets depends on at least two elements: (i) indirect network externalities and (ii) pattern of subscription (‘homing’) to the platform. Unde...

We analyze the welfare implication of regulating the price of last-mile access to consumers provided by local Internet service providers (ISPs). We consider a new two-sided market model that highlights the vertical relationship between two platforms, a local ISP and a large content provider called a Content Network Platform (CNP) that plays the role of platform in the content markets. The welfa...

In media markets, the value of advertisement exposure depends on circulation, and media consumers’ valuation is affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and asymmetric equilibria in terms of firm size. There is less scope for asymmetry when products are more differentiated or of higher intrinsic quality. Some media exhib...