We develop a structural econometric framework that allows us to simulatethe effects of mergers among two-sided platforms selling differentiatedproducts. We apply the proposed methodology to the Dutch newspaperindustry. Our structural model encompasses demands for differentiatedproducts on both sides of the market and profit maximization bycompeting oligopolistic publishers who choose subscription andadvertising prices, while taking the interactions between the two-sidesof the market into account. We measure the sign and size of the indirectnetwork effects between the two sides of the market and simulate theeffects of a hypothetical merger on prices and welfare.
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