Online platforms' price discrimination leads to fierce competition and lower profits
This paper looks at how online platforms compete with each other and set prices. They used a model to see how two platforms can either charge different prices to new and regular customers or charge the same price to everyone. The study found that when platforms use different prices, they can make more money at first, but in the long run, they end up making less profit. The study also showed that when platforms compete fiercely, customers end up getting lower prices. In the end, it's better for platforms to work together or for one platform to become dominant.