Paul Belleflamme, UCLouvain

"Competition For Prominence"

Abstract

We examine prominence allocation in digital marketplaces, analyzing how default retailer selection affects competition and consumer welfare. We investigate the impact of different fee structures (unit vs. ad valorem) on prominence allocation and market dynamics. Our findings reveal that prominence significantly influences retailer competition, with both positive and negative implications for consumers. The choice of fee structure profoundly affects allocation strategies and competitive landscapes. This research contributes to digital marketplace economics, offering valuable insights to policymakers, marketplace operators, and retailers.

(Joint with Fabrizio Ciotti and Leonardo Madio)

Contact person: Egor Starkov