Publication Details
Abstract
The expansion of digital platforms has introduced new dynamics in market competition, particularly through the strategic use of pricing. This paper investigates how leading platforms like Amazon, Uber, and Spotify deploy pricing models to gain a competitive advantage, with a focus on multimarket contact (MMC) and cross-market externalities. Drawing on theoretical frameworks and empirical studies, the analysis distinguishes between unilateral and bilateral pricing regimes and examines how these influence user surplus, platform profits, and market equilibrium. Findings suggest that MMC intensifies buyer-side price competition but has variable impacts on seller pricing and platform profitability depending on externality structures. The study informs antitrust regulation by illustrating how data‐driven strategies and self‐preferencing can entrench dominance.