@article{1e082512e22b4bbda684d5bbc0a62c5a,
title = "Sufficient Decisions in Multi-Sided and Multiproduct Markets",
abstract = "We show that in many models where firms make multiple decisions, analysis can be made more tractable by re-formulating the model into one in which each firm makes a single choice, which we call a sufficient decision. The transformation allows application of standard techniques in these settings, including pass-through for tax incidence and upward pricing pressure for merger analysis. The transformation works because the assumption of profit maximization links the firms{\textquoteright} decisions together. Examples include models of monopoly and oligopoly in two-sided markets, where a natural sufficient decision may be the number of transactions that the firm facilitates, and multiproduct markets.",
author = "Alexei Alexandrov and Spulber, {Daniel F.}",
note = "Funding Information: ∗We thank the participants of the International Industrial Organization Conference (and Jeff Prince for his discussion), of the European School of Management and Technology{\textquoteright}s seminar, of the Consumer Financial Protection Bureau{\textquoteright}s internal seminar, of the CRES Foundations of Business Strategy Conference (and Gary Biglaiser for his discussion), of the DC IO Conference (and DanVincent for his discussion), and of the American Law and Economics Association Conference (and Pablo Spiller for his discussion). We also thank the Editor and three anonymous referees for their comments. Spulber is grateful to the Ewing Marion Kauffman Foundation, Qualcomm and the Kellogg School of Management for research support. The views expressed are those of the authors and do not necessarily represent† those of past or current employers. Authors{\textquoteright} affiliations: (Unaffiliated for research purposes) Seattle, Washington, U.S.A. e-mail: alexei01@gmail.com ‡Kellogg School of Management, Northwestern University, Evanston, Illinois, U.S.A. e-mail: JEMS@kellogg.northwestern.edu 1 Oligopoly models with single decisions include Cournot [1838], Bertrand [1883], Chamberlin [1933], Hotelling [1929], and Salop [1979]. Publisher Copyright: {\textcopyright} 2017 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd",
year = "2017",
month = dec,
doi = "10.1111/joie.12159",
language = "English (US)",
volume = "65",
pages = "739--766",
journal = "Journal of Industrial Economics",
issn = "0022-1821",
publisher = "Wiley-Blackwell",
number = "4",
}