Download or read book Spatial Competition with Network Effects written by Fang Liu and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I study the competition of platforms which offer differentiated products à la Hotelling in the presence of network effects when the location choices are endogenous. I mainly find that undermill pricing policy and unbalanced competition, a tendency of agglomeration emerges in equilibrium when the difference of cross-sided network externalities is sufficiently high. The equilibrium locations under mill pricing and balanced competition involve platforms locating at the twoendpoints in the agent space. The tendency of agglomeration emerges under both unbalanced and balanced competition with discriminatory delivered pricing policy. The results suggest that social planners should pay special attention to such a (potentially) unbalanced spatial competitionamong platforms, since a price decrease on a certain side may be ended up with losses of social welfare.