TY - JOUR
T1 - Two-sided markets
T2 - A progress report
AU - Rochet, Jean Charles
AU - Tirole, Jean
PY - 2006
Y1 - 2006
N2 - We provide a road map to the burgeoning literature on two-sided markets and present new results. We identify two-sided markets with markets in which the structure, and not only the level of prices charged by platforms, matters. The failure of the Coase theorem is necessary but not sufficient for two-sidedness. We build a model integrating usage and membership externalities that unifies two hitherto disparate strands of the literature emphasizing either form of externality, and obtain new results on the mix of membership and usage charges when price setting or bargaining determine payments between end-users.
AB - We provide a road map to the burgeoning literature on two-sided markets and present new results. We identify two-sided markets with markets in which the structure, and not only the level of prices charged by platforms, matters. The failure of the Coase theorem is necessary but not sufficient for two-sidedness. We build a model integrating usage and membership externalities that unifies two hitherto disparate strands of the literature emphasizing either form of externality, and obtain new results on the mix of membership and usage charges when price setting or bargaining determine payments between end-users.
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U2 - 10.1111/j.1756-2171.2006.tb00036.x
DO - 10.1111/j.1756-2171.2006.tb00036.x
M3 - Article
AN - SCOPUS:34248324442
SN - 0741-6261
VL - 37
SP - 645
EP - 667
JO - RAND Journal of Economics
JF - RAND Journal of Economics
IS - 3
ER -