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Author:Rochet, J.-C.
Tirole, J.
Title:Platform competition in two-sided markets
Journal:Journal of the European Economic Association
2003 : JUN, VOL. 1:4, p. 990-1029
Index terms:Market structure
Competition
Networks
Internet
Language:eng
Abstract:Many if not most markets with network externalities are two-sided. To succeed, platforms in industries such as software, portals and media, payment systems and the Internet, must "get both sides of the market on Board". The authors build a model of platform competition with two-sided markets. It unveils the determinants of price allocation and end-user surplus for different governance structures, and compares the outcomes with those under an integrated monopolist and a Ramsey planner.
SCIMA record nr: 251017
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