Paul Belleflamme

Paul Belleflamme
Université Catholique de Louvain - UCLouvain | UCLouvain · Center for Operations Research and Econometrics

PhD in Economics

About

118
Publications
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Introduction
I graduated in economics at the University of Namur (1991), where I received my doctoral degree in economics (1997). I also hold a MA in Economics from Columbia University (1992). In 1998, I became lecturer in economics at Queen Mary, University of London, where I obtained a Post Graduate Certificate in Academic Practice in November 2001. Since 2002, I am professor at Université catholique de Louvain. My main field of interest is industrial organization.
Additional affiliations
September 2011 - December 2011
Universität Mannheim
September 2002 - present
Université Catholique de Louvain - UCLouvain
September 2002 - present
Université Catholique de Louvain - UCLouvain
Position
  • Professor (Full)

Publications

Publications (118)
Article
Full-text available
We introduce asymmetries across platforms in the linear model of competing two-sided platforms with singlehoming on both sides and fully characterize the price equilibrium. We identify market environments in which one platform has a larger market share on both sides while obtaining a lower profit than the other platform. This is compatible with hig...
Article
Operators of digital platforms have to convince potential users that their intermediation and matchmaking services bring additional value in the market. To do so, they need to formulate a strong value proposition, which convinces users that joining the platform brings them larger value than staying out. In recent years, a number of frameworks have...
Article
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This article investigates how firms compete when they have the ability to set a personalized price to those consumers they can profile and a uniform price to those consumers they cannot profile; how this affects the incentives to supply data analytics to firms; and what, if any, policy recommendations can be provided.
Technical Report
Full-text available
The project has made substantial progress in different areas related to circular economy. First, it has enhanced our understanding of the circular economy concept by developing a novel theoretical framework to ground indicators. Second, extended input-output modelling tools have been developed and used to study the interlinkages within the Belgian...
Article
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On many two‐sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition...
Article
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Vous avez certainement déjà entendu parler de "Games of Thrones". C'est la série télé la plus populaire du moment. Ses deux premières saisons ont fait un carton et HBO (chaine américaine à péage, productrice de la série) diffuse pour l'instant la saison 3. Ce sont quelque 4,5 millions d'abonnés qui suivent la série. Mais, au total, l'audience est b...
Article
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Dans son communiqué de presse du 9 avril 2016 relatif au contrôle budgétaire, le gouvernement belge annonce, parmi les réformes structurelles, la taxation de ce qu’il est convenu d’appeler l’économie collaborative, dont les figures emblématiques sont des plateformes numériques comme Airbnb, Uber ou Listminut. Le communiqué n’indique pas la manière...
Article
Full-text available
Au début du mois d’octobre 2010, l’entreprise Apple a été condamnée par la justice américaine à payer pas moins de 625,5 millions de dollars à la petite société Mirror Worlds, LLC pour avoir enfreint trois de ses brevets. Le géant informatique a d’ores et déjà contesté la décision. Ce récent litige ramène sur le devant de la scène les patent trolls...
Article
Full-text available
Cela fait quelques jours que l'on parle en France d'une "taxe rose". Selon l'enquête d'un collectif, les femmes paieraient plus cher que les hommes pour une série de produits; le plus souvent, ces produits sont largement identiques si ce n'est qu'ils diffèrent par la couleur de leur emballage, le rose identifiant les produits destinés aux femmes. L...
Article
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Dans un focus du 19 décembre 2012, j'examinais les effets potentiels de la nouvelle loi Télécom sur la concurrence dans le secteur et sur les prix pour les consommateurs. En développant la notion de «coûts de changement», j'expliquais qu'il faut s'attendre à des effets contrastés pour la nouvelle loi Télécom. En effet, en facilitant le changement d...
Article
Full-text available
Il ne se passe pas un jour sans que l'on parle du secteur de la musique et de la période chahutée qu'il traverse pour le moment. Epinglons quelques nouvelles récentes. - Sur son site web, la Recording Industry Association of America (Association américaine de l’industrie du disque) constate une nouvelle baisse de 9 % des ventes de disques au 1er se...
Article
Full-text available
Nous publions le 100ème numéro de Regards économiques en ce 12/12/12, jour de fin du monde pour certains, jour marquant l'anniversaire d'une belle aventure entamée voici déjà 10 ans pour d'autres ! En effet, c'est en 2002, à l'initiative de l'IRES, que la revue des économistes de l'UCL a vu le jour avec pour objectif de publier 6 à 8 numéros par an...
Article
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Depuis le 1er octobre dernier, une nouvelle loi «Télécom» transpose dans le droit belge une série de directives européennes visant à mieux protéger les consommateurs sur le marché des télécommunications. Une des mesures phares de cette loi est la possibilité qui est désormais donnée aux consommateurs de changer d'opérateur (téléphonie fixe ou mobil...
Article
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Cela fait quelques jours que l'on commente en tous sens l'annonce par Walibi de la création d'un "Speedy Pass" permettant, pour un prix de 35 €, de couper les files d'attente. En particulier, Philippe Courard (Secrétaire d'Etat aux Familles) et Bruno Vanobbergen (Commissaire flamand aux droits de la jeunesse) ont dénoncé une politique tarifaire fai...
Article
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En quelques semaines seulement, l'UCL a vu près de 20.000 personnes s'inscrire à un de ses cours, intitulé Paradigms of Compter Programming; 15.000 autres se sont inscrites au cours International Human Rights et quelques milliers à deux autres cours. Ces inscriptions, ainsi que d'autres qui ne cessent d'arriver de jour en jour, proviennent de 170 p...
Article
Full-text available
En quelques semaines seulement, l'UCL a vu près de 20.000 personnes s'inscrire à un de ses cours, intitulé Paradigms of Compter Programming; 15.000 autres se sont inscrites au cours International Human Rights et quelques milliers à deux autres cours. Ces inscriptions, ainsi que d'autres qui ne cessent d'arriver de jour en jour, proviennent de 170 p...
Article
Full-text available
Au début du mois d’octobre 2010, l’entreprise Apple a été condamnée par la justice américaine à payer pas moins de 625,5 millions de dollars à la petite société Mirror Worlds, LLC pour avoir enfreint trois de ses brevets. Le géant informatique a d’ores et déjà contesté la décision. Ce récent litige ramène sur le devant de la scène les patent trolls...
Article
Full-text available
Nous publions le 100ème numéro de Regards économiques en ce 12/12/12, jour de fin du monde pour certains, jour marquant l'anniversaire d'une belle aventure entamée voici déjà 10 ans pour d'autres ! En effet, c'est en 2002, à l'initiative de l'IRES, que la revue des économistes de l'UCL a vu le jour avec pour objectif de publier 6 à 8 numéros par an...
Article
Full-text available
Il ne se passe pas un jour sans que l'on parle du secteur de la musique et de la période chahutée qu'il traverse pour le moment. Epinglons quelques nouvelles récentes. - Sur son site web, la Recording Industry Association of America (Association américaine de l’industrie du disque) constate une nouvelle baisse de 9 % des ventes de disques au 1er se...
Article
In this article, we develop some of the economics of the intricate relationship between the demand and the supply of personalized data. We first focus on one heavily debated use of personal data: differential pricing (price discrimination). This allows us to highlight the role played by privacy protection, the impact on consumer welfare and the inc...
Article
Full-text available
We study how producers of cultural goods can strategically invest in raising the attractiveness of their goods in order to secure the most profitable release dates. In a game‐theoretic setting, where two producers choose their investment expenditure before simultaneously setting the release date of their good, we prove that two equilibria are possi...
Article
Full-text available
How are transactions involving data currently organized? From the demand-side, a description is proposed of why and how data acquire value. From the supply-side, questions are raised about where the data come from and who controls their production and collection. Thereafter, the ways that supply and demand meet are discussed. An ever increasing qua...
Article
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Le 19 mars 2018, Facebook dégringole en Bourse après la révélation que la société Cambridge Analytica a utilisé les données personnelles de près de 50 millions d'utilisateurs du réseau social sans leur consentement (1). On apprend aussi ce jour-là que les selfies des internautes, qui peuvent servir à valider des processus d'identification, se négoc...
Preprint
Full-text available
The rise and success of digital platforms (such as Airbnb, Amazon, Booking, Expedia, Ebay, and Uber) rely, to a large extent, on their ability to address two major issues. First, to effectively facilitate transactions, platforms need to resolve the problem of trust in the implicit or explicit promises made by the counterparties; they post reviews a...
Article
Full-text available
The rise and success of digital platforms (such as Airbnb, Amazon, Booking, Expedia, Ebay, and Uber) rely, to a large extent, on their ability to address two major issues. First, to effectively facilitate transactions, platforms need to resolve the problem of trust in the implicit or explicit promises made by the counterparties; they post reviews a...
Article
Full-text available
We examine the reasons behind the rise and fall of Take Eat Easy, a Belgian home food delivery platform, in order to understand better the competitive dynamics that are at play in the sharing economy. We start by describing the home food delivery market in Europe and by summarizing the key milestones in the short existence of Take Eat Easy. We prop...
Article
Full-text available
Competition between two-sided platforms is shaped by the possibility of multihoming. If users on both sides singlehome, each platform provides users on either side exclusive access to its users on the other side. In contrast, if users on one side can multihome, platforms exert monopoly power on that side and compete on the singlehoming side. This p...
Article
Full-text available
We analyze the effects of various taxes on competing two-sided platforms. First, we consider nondiscriminating taxes. We show that specific taxes are entirely passed to the agents on the side on which they are levied; other agents and platforms are left unaffected. Transaction taxes hurt agents on both sides and benefit platforms. Ad valorem taxes...
Article
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Two duopolists compete in price on the market for a homogeneous product. They can use a 'profiling technology' that allows them to identify the willingness-to-pay of their consumers with some probability. If both firms have profiling technologies of the exact same precision, or if one firm cannot use any profiling technology, then the Bertrand para...
Chapter
Full-text available
Ce chapitre analyse les modèles d'affaires et les stratégies des plateformes de l'économie collaborative. L'accent est mis sur les plateformes marchandes, aussi appelées 'places de marché de pair à pair'. Après avoir précisé le contexte (pourquoi, quand et où ?), le chapitre décrit les différents participants à ces places de marché (qui ?), ainsi q...
Article
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I first review the theoretical apparatus that has been largely used so far to analyze information goods industries. I argued then that although this apparatus was fairly appropriate in the analog era and in the early digital era, it now needs to be significantly updated. The advent of streaming challenges indeed the main assumptions that underlie t...
Article
Full-text available
We introduce within-group external effects in the two-sided singlehoming model of Armstrong (2006). First, we propose a general characterization of the platform access fees at the symmetric equilibrium of the game. Second, we combine this general formulation with a specific modeling of the relationship between buyers and sellers on B2C platforms, s...
Chapter
Full-text available
This chapter shows how the theory of industrial organization can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors.
Research
Full-text available
Article publié sur The Conversation (https://theconversation.com/dans-leconomie-du-partage-il-faut-comprendre-que-les-taxes-aussi-sont-partagees-58016)
Article
Full-text available
We consider the effects of taxes for competing two-sided platforms. We first detail how a platform passes a tax increase on its prices. Adding price competition, we study next how the tax affects profits. Because of the strategic implications of the cross-side external effects, the tax increase may end up increasing the profit of the taxed platform...
Chapter
Full-text available
This chapter shows how the theory of industrial organization can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and behavior of crowdfunding platforms, which intermediate between entrepreneurs and contributors.
Research
Full-text available
A monopolist can use a ‘tracking’ technology that allows it to identify a consumer's willingness to pay with some probability. Consumers can counteract tracking by acquiring a ‘hiding’ technology. We show in this note that consumers are collectively better off when this hiding technology is not available, even when consumers can acquire it free of...
Book
Cambridge Core - Strategic Management - Industrial Organization - by Paul Belleflamme
Research
We study how producers of cultural goods can strategically increase their promotion budgets to secure the most profitable release dates for their goods. In a game-theoretic setting, where two producers choose their budget before simultaneously setting the release date of their good, we prove that two equilibria are possible: releases are either sim...
Research
Full-text available
We study how producers of cultural goods can strategically increase their promotion budgets to secure the most profitable release dates for their goods. In a game-theoretic setting, where two producers choose their budget before simultaneously setting the release date of their good, we prove that two equilibria are possible: releases are either sim...
Research
Full-text available
We study how producers of cultural goods can strategically increase their promotion budgets to secure the most profitable release dates for their goods. In a game-theoretic setting, where two producers choose their budget before simultaneously setting the release date of their good, we prove that two equilibria are possible: releases are either sim...
Book
Full-text available
Thoroughly revised according to classroom feedback, Industrial Organization: Markets and Strategies offers an up-to-date and rigorous presentation of modern industrial organization that blends theory with real-world applications and derives implications for firm strategy and competition policy. This comprehensive textbook acquaints readers with the...
Research
Full-text available
Lecture slides on Competition and Regulation in Two-Sided Markets
Article
Full-text available
This paper provides a description of the crowdfunding sector, considering investment based crowdfunding platforms as well as platforms in which funders do not obtain monetary payments. It lays out key features of this quickly developing sector and explores the economic forces at play that can explain the design of these platforms. In particular, it...
Article
Full-text available
This paper provides a description of the crowdfunding sector, considering investment-based crowdfunding platforms as well as platforms in which funders do not obtain monetary payments. It lays out key features of this quickly developing sector and explores the economic forces at play that can explain the design of these platforms. In particular, it...
Chapter
Full-text available
Cumulative innovations raise a number of problems that the patent system, without further institutional provisions, is ill equipped to cope with. In this article, we focus on the main problem raised by sequential innovations, namely that a patent on the first-generation innovation might confer the patentee a hold-up right over subsequent innovation...
Article
Full-text available
We use various economic and pedagogical concepts to understand the specificities of MOOC (Massive Online Open Courses) platforms. We discuss how the private provision of MOOCs can be sustained. Using the theory of multisided platforms, we analyze five ways to monetize the MOOC business. We then claim that MOOC platforms can play a key transformativ...
Article
Full-text available
This article reviews some recent developments in the study of crowdfunding – i.e., the practice of raising funds through an open call on the Internet. It also shows how microeconomic theory can help us understand some important aspects of crowdfunding that go beyond the finance sphere of the firm. A special attention is devoted to the role and beha...
Article
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This note summarizes and updates our previous survey of the economics of digital piracy (Belleflamme and Peitz, 2012).
Chapter
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DefinitionDigital piracy is the act of reproducing, using, or distributing information products, in digital formats and/or using digital technologies, without the authorization of their legal owners.IntroductionThe objective of this entry is to provide a comprehensive and up-to-date overview of digital piracy (this entry summarizes and updates Bell...
Article
Full-text available
We start by using various economic and pedagogical concepts to understand the specificities of MOOC (Massive Online Open Courses) platforms. We then discuss how the private provision of MOOCs, seen as pure public goods, can be sustained. Based on the theory of multisided platforms, we analyse five ways to monetize the MOOC business. Our conclusion...
Article
Full-text available
In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of product quality) before purchase, they can infer the probabi...
Article
Full-text available
This paper analyzes the optimal protection strategy for an innovator of a complex innovation who faces the risk of imitation by a competitor. We suppose that the innovation can be continuously fragmented into sub-innovations. We characterize the optimal mix of patent and trade secrets when the innovator faces a strict novelty requirement and can on...
Article
Full-text available
This study investigates characteristics of individual crowdfunding practices and drivers of fundraising success, where entrepreneurs can tailor their crowdfunding initiatives better than on standardized platforms. Our data indicate that most of the funds provided are entitled to receive either financial compensations (equity, profit-share arrangeme...
Article
Full-text available
The basic idea of crowdfunding is for an entrepreneur to raise external finance from a large audience (the "crowd"), where each individual provides a very small amount, instead of soliciting a small group of sophisticated investors. The entrepreneur uses her social networks and established platforms on the Internet to directly interact with the cro...
Article
Full-text available
Many products and services are not sold on open platforms but on competing for-profit platforms, which charge buyers and sellers for access. What is the effect of for-profit intermediation on seller investment incentives? Since for-profit intermediaries reduce the available rents in the market, one might naively suspect that sellers have weaker inv...
Article
Full-text available
This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the consequences of digital piracy, using a base model an...
Book
Full-text available
Industrial Organization: Markets and Strategies provides an up-to-date account of modern industrial organization that blends theory with real-world applications. Written in a clear and accessible style, it acquaints the reader with the most important models for understanding strategies chosen by firms with market power and shows how such firms adap...
Article
Full-text available
The first objective of the paper is to identifiy a number of issues related to crowdfunding that are worth studying from an industrial organization (IO) perspective. To this end, we first propose a definition of crowdfunding; next, on the basis on a previous empirical study, we isolate what we believe are the main features of crowdfunding; finally,...
Article
Full-text available
Les sociétés occidentales sont en pleine mutation et sont devenues, à la fin du siècle passé, de véritables économies de la connaissance. Le brevet vise à rendre excluable cette connaissance et à stimuler, par ce biais, l’innovation. Sur le marché des brevets qui se développe petit à petit, certains acteurs, qualifiés de patent trolls, tirent parti...
Article
Full-text available
Since the economic and managerial fields integrated the Internet tool, new opportunities were created. Among them, information management aiming at help- ing to make the "best choices" became a central topic in e-management. New types of intermediaries appeared in the virtual world. Actors who join these intermedi- ation places and take part in the...
Article
Full-text available
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 im...
Article
Full-text available
In a Cournot duopoly where firms incur a fixed cost for serving each market, collusion is easier to sustain with production quotas if the fixed cost is small enough, and with market sharing agreements if it is large enough.
Chapter
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Article
The effects of (private, small-scale) piracy on the pricing behavior of producers of information goods are studied within a unified model of vertical differentiation. Although information goods are assumed to be perfectly differentiated, demands are interdependent because the copying technology exhibits increasing returns to scale. We characterize...
Article
Full-text available
In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of product quality) before purchase, they can infer the probabi...
Article
We analyze whether and how the fact that products are not sold on free, public, platforms but on competing for-profit platforms affects sellersÕ investment incentives. Investments in cost reduction, quality, or marketing measures are here to joint and coordinated efforts by sellers. We show that, in general, for-profit intermediation is not neutral...
Article
Full-text available
In this note, we try to evaluate how effective the patent system is to foster innovation. We first develop the microeconomic reasoning underlying the legal protection of intellectual property. We then try to assess whether this legal protection does indeed fulfil its mission. We show that due to the difficulty of measuring innovative output, it is...
Article
Full-text available
Because the patent system is nowadays under criticisms, it is legitimate to question whether patents provide the best incentive mechanism for innovation. Wouldn’t it be preferable to base incentives on a reward system? This is the question addressed in this article, first in a general perspective and then, by considering the specific case of the ph...
Article
In the spirit of Arrow (1962), we examine, in an oligopoly model with horizontally differentiated products, how much a firm is willing to pay for a process innovation that it would be the only one to use. We show that different measures of competition (number of firms, degree of product differentiation, Cournot vs Bertrand) affect incentives to inn...
Article
Full-text available
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection a...
Article
Full-text available
Price discrimination consists in selling the same product to different buyers at different prices. When sellers cannot relate a buyer's willingness to pay to some observable characteristics, price discrimination can be achieved by targeting a specific package (i.e., a selling contract that includes various clauses in addition to price) for each cla...
Article
Full-text available
We examine how yardstick competition between jurisdictions affects the agency problem resulting from uncertainty about politicians (adverse selection) and their policies (moral hazard). We find that yardstick comparison can contribute both to disciplining and to selecting politicians. Copyright Springer-Verlag 2005
Article
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We examine how yardstick competition between jurisdictions affects the agency problem resulting from uncertainty about politicians (adverse selection) and their policies (moral hazard). We find that yardstick comparison can contribute both to disciplining and to selecting politicians.
Article
Full-text available
In a successive vertical oligopoly, a set of "sellers" produce some input to be transformed into a final product by a set of "buyers". On this two-sided market, a firm's profit increases with the number of firms of the other type and decreases with the number of firms of its own type. We examine the emergence or the entry of a new marketplace spons...