Participation
costs exist and matter, affecting bidders' decisions about which ad platforms
to use, and changing the welfare consequences of mergers or joins among
platforms.
By
creating a joined ad platform of larger size than Microsoft or Yahoo alone, the
transaction lets advertisers spread participation costs over a larger purchase,
making it worthwhile for small to midsize advertisers to sign up with the
joined Microsoft-Yahoo platform even though they do not use Microsoft or Yahoo
separately.
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