12/05/2026 - 12:45 - Doyen 22
Sumit Shrivastav
(UCLouvain, LIDAM, CORE)
will give a presentation on
Two-sided platform competition with fixed wages
Abstract
This paper studies how fixed, wage-like compensation affects competition between two-sided platforms. We develop a two-sided Hotelling model with heterogeneous sellers who choose between interaction-based pay and a fixed wage, while buyers value both the number and the intensity of seller interactions. Platforms decide whether to offer a wage option and set access prices on both sides. We characterize equilibria when no platform, both platforms, or only one platform offers a wage, and compare profits and participation. Fixed wages act as a screening device for seller types and can raise platform profits and seller surplus.
(with Paul Belleflamme)
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