Two types of agents interact on a pre‐existing free platform. Agents value positively the presence of agents of the other type but may value negatively the presence of agents of their own type. We ask whether a new platform can find fees and subsidies so as to divert agents from the existing platform and make a profit. We show that this might be impossible if intra‐group negative externalities are sufficiently (but not too) strong with respect to positive inter‐group externalities.
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Belleflamme et al. (2009) studied this question.
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