Cannibalization and option value effects of secondary markets: Evidence from the US concert industry
研究二级市场降低搜索摩擦如何影响一级市场企业的价值获取，发现产品稀缺且价值高时企业受益，反之受损，并促使企业主动限制供给以分离市场。
We examine how reducing search frictions in secondary markets affects the value appropriated by firms in primary markets. We characterize two effects on primary‐market firms caused by intermediaries entering secondary markets: the “cannibalization” and “option value” effects. Separation between primary and secondary markets can drive which of the two effects dominates. Firms selling valuable and scarce products are more likely to have separate primary and secondary markets, and will therefore appropriate more value when secondary markets thicken. Firms selling products that are not valuable and scarce will be hurt. Further, we hypothesize that firms have incentives to engineer scarcity by limiting supply when secondary markets thicken to separate primary and secondary markets. We find support for these hypotheses in the U.S. concert ticket industry . Copyright © 2014 John Wiley & Sons, Ltd.