Platform Ownership

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004We develop a general theoretical framework of trade on a platform on which buyers and sellers interact. The platform may be owned by a single large, or many small independent or vertically integrated intermediaries. We provide a positive and normative analysis of the impact of platform ownership structure on platform size. The strength of network effects is important in the ranking of ownership structures by induced platform size and welfare. While vertical integration may be welfare-enhancing if network effects are weak, monopoly platform ownership is socially preferred if they are strong. These are also the ownership structures likely to emerge

Platform Ownership

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004We develop a general theoretical framework of trade on a platform on which buyers and sellers interact. The platform may be owned by a single large, or many small independent or vertically integrated intermediaries. We provide a positive and normative analysis of the impact of platform ownership structure on platform size. The strength of network effects is important in the ranking of ownership structures by induced platform size and welfare. While vertical integration may be welfare-enhancing if network effects are weak, monopoly platform ownership is socially preferred if they are strong. These are also the ownership structures likely to emerge.Two-Sided Markets; Network Effects; Intermediation; Product Diversity

Platform Ownership..

We develop a theoretical framework of trade on a platform on which buyers and sellers interact, and compare the impact of different platform ownership structures. If two-sided network effects are strong, monopoly ownership induces more trade than dispersed ownership and is therefore socially preferable. Independent of the strength of network effects, monopoly ownership dominates a club-like ownership structure where incumbent owners can exclude potential entrants. Under dispersed ownership, vertical integration tends to increase welfare as it allows the internalization of demand externalities. Allowing incumbent platform owners to exclude potential entrants hurts buyers but can raise welfare.

Incremental Network Design with Minimum Spanning Trees

Given an edge-weighted graph $G=(V,E)$ and a set $E_0\subset E$, the incremental network design problem with minimum spanning trees asks for a sequence of edges $e'_1,\ldots,e'_T\in E\setminus E_0$ minimizing $\sum_{t=1}^Tw(X_t)$ where $w(X_t)$ is the weight of a minimum spanning tree $X_t$ for the subgraph $(V,E_0\cup\{e'_1,\ldots,e'_t\})$ and $T=\lvert E\setminus E_0\rvert$. We prove that this problem can be solved by a greedy algorithm.Comment: 9 pages, minor revision based on reviewer comment

The Core Histone-binding Region of the Murine Cytomegalovirus 89K Immediate Early Protein

The gene regulatory immediate early protein, pp89, of murine cytomegalovirus interacts with both DNA-associated and isolated histones in vitro. We characterized the histone-binding region of pp89 and its cellular localization during cell division to examine the possible interaction between pp89 and chromatin. pp89 expressed constitutively in cell line BALB/c 3T3 IE1 does not interact with condensed chromatin. As observed in infected cells, pp89 is localized within the nucleus of cells during interphase but spreads throughout the cell plasma following degradation of the nuclear membrane during early mitosis. In late telophase, pp89 is reorganized within the nucleus. Analysis of pp89 deletion mutants and of fragments generated by cleavage at pH 2·5 revealed that the regions responsible for association with histone are located between amino acids 71 and 415, and are not identical with the domain that shows homology to histone H2B or the highly acidic carboxy-terminal region. A potential gene-activating role of the high affinity of pp89 for isolated histones and the low affinity for DNA-associated histones is discussed

An acidic region of the 89K murine cytomegalovirus immediate early protein interacts with DNA

The product of the ie 1 gene, the regulatory immediate early protein pp89 of murine cytomegalovirus (MCMV), interacts with core histones, which can mediate the association of pp89 with DNA. We report the capacity of pp89 to interact directly with DNA in the absence of cellular proteins. After separation of proteins by SDS–PAGe, pp89 bound ds- and ssDNA, with a preference for ssDNA. Binding to specific DNA sequences in the MCMV genome was not detected. The DNA-binding region of pp89 was located to amino acids 438 to 534 by analysis of deletion mutants expressed as -galactosidase or TrpE fusion proteins. This region is identical to the highly acidic C-terminal region spanning amino acids 424 to 532. The human cytomegalovirus IE1 protein, which contains a similar extended C-terminal acidic region, does not react with DNA under the same experimental conditions