The DOI matches its Crossref record; 242 of the 242 references it cites were found in a registry or an index; 2 of the 18 sources its claims cite were checked for support.
The Economics of Two-Sided Markets
Open accessAbstract
Broadly speaking, a two-sided market is one in which 1) two sets of agents interact through an intermediary or platform, and 2) the decisions of each set of agents affects the outcomes of the other set of agents, typically through an externality. In the case of a video game system, the intermediary is the console producer—Sony in the scenario above—while the two sets of agents are consumers and video game developers. Neither consumers nor game developers will be interested in the PlayStation if the other party is not. Similarly, a successful payment card requires both consumer usage and merchant acceptance, where both consumers and merchants value each others' participation. Many more products fit into this paradigm, such as search engines, newspapers, and almost any advertiser-supported media (examples in which consumers typically negatively value, rather than positively value, the participation of the other side), as well as most software or title-based operating systems and consumer electronics. This paper seeks to explain what two-sided markets are and why they interest economists. I discuss the strategies that firms typically consider, and I highlight a number of puzzling outcomes from the perspective of the economics of two-sided markets. Finally, I consider the implications for public policy, particularly antitrust and regulatory policy, where there have been a number of recent issues involving media, computer operating systems, and payment cards.
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2 of 18 cited sources checked · 1 supported · 0 flagged · accuracy not yet measured
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In the paper
“In fact, two-sided markets often seem to evolve toward to a situation where members of one side use a single platform and the other side uses multiple platforms; Armstrong (2006, Section 5) makes this point and provides formal analysis.”
§ The Economics of Two-Sided Markets > Pricing
What the sources say
- Partly supportedcites Armstrong (2006, Section 5) sourceExperimental — accuracy not yet measured
Section 5, “Competitive bottlenecks” (page unavailable), formally analyzes a market in which one group uses a single platform and the other uses multiple platforms. The discussion preceding Section 5 says several important markets resemble this configuration. The paper does not establish that markets evolve toward it over time. (LLM, conf=0.83)
Strength:hedged· not yet calibratedCausal:correlational· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passes- Partly supported
Every source the paper cites for this claim was checked and supports it.
In the paper
“Hence, firms compete aggressively on the side that uses a single network in order to charge monopoly prices to the other side that is trying to reach them (Armstrong, 2006).”
§ The Economics of Two-Sided Markets > Pricing
What the sources say
- Supportedcites Armstrong, 2006 source
In “Fixed fees or per-transaction charges” (page unavailable), Armstrong says platforms compete for single-homing agents but have monopoly power over access to them, leading to high prices for the multi-homing side. Section 5, “Competitive bottlenecks” (page unavailable), describes each platform as holding a local monopoly over that access. The claim is a fair paraphrase of this competitive-bottleneck result. (LLM, conf=0.91)
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passes- Supported
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In addition, two-sided markets allow for a new form of price discrimination: discrimination based on heterogeneity in the attractiveness of an agent to the other side.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesA conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“These markets seem much less flexible in terms of the choice of two-sidedness.”
§ The Economics of Two-Sided Markets > Openness
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesThe paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Advertising prices depend on consumer demand for advertising as well, with relatively low prices for advertisements that consumers more highly value (such as classified advertisements and some local advertisements).”
§ The Economics of Two-Sided Markets > Abstract
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesA conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Hence, the “twosidedness” of pricing can be more pronounced in competitive markets.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesA conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“If there are multiple competing market intermediaries, the effect of participation of one side on the other has even more bite.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesThe paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“The main result is that pricing to one side of the market depends not only on the demand and costs that those consumers bring but also on how their participation affects participation on the other side and the profit that is extracted from that participation.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesA conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In this sense, Microsoft is more open than Apple.”
§ The Economics of Two-Sided Markets > Openness
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesA conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In this scenario, the interchange fee primarily affects the terms that merchants and consumers face and the total volume of transactions.”
§ The Economics of Two-Sided Markets > Abstract
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passes
- Probably not a substantial claim. 34
- It may state two separate claims as one. 39
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Of great controversy is that the merchant's bank must pay the consumer's bank an “interchange fee,” a percent of each transaction.”
§ The Economics of Two-Sided Markets > Abstract
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✗ Based: failsProbably not a substantial claim. The paper may give no reason why it holds.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Providers of platforms often prefer incompatibility on the grounds that it locks in current customers and locks out competitors.”
§ The Economics of Two-Sided Markets > Openness
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The interchange fee presumably explains why banks can offer generous rewards programs to consumers for using their credit cards.”
§ The Economics of Two-Sided Markets > Abstract
Strength:hedged· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“This result might explain why payment card pricing has increasingly favored consumers over time rather than merchants (for instance, with the rise of rewards programs), since consumers and not merchants typically use a single network and competition among card networks has become more important relative to competition between card networks and cash.”
§ The Economics of Two-Sided Markets > Pricing
Strength:hedged· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Hence, payment associations offered supermarkets relatively low interchange fees, which led to low bank fees and ultimately to the adoption of payment card usage by supermarkets.”
§ The Economics of Two-Sided Markets > Pricing
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“These changes do not appear to have led to a strategic change with respect to interchange policy.”
§ The Economics of Two-Sided Markets > Abstract
Strength:hedged· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds.
In the paper
“However, as Rochet and Tirole (2002) point out, if serving consumers and merchants is perfectly competitive, then the interchange fee does not affect the profits of the member banks.”
§ The Economics of Two-Sided Markets > Abstract
What the sources say
- Not checked — no full text of the sourcecites Rochet and Tirole (2002) source
Load-bearingStrength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Thus, it may be better to discuss two-sided “strategies” rather than two-sided “markets,” because two-sidedness is an endogenous choice in some markets, not a technologically determined outcome.”
§ The Economics of Two-Sided Markets > Openness
Tests✓ Asserted: passes✗ Checkable: fails✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence. The paper’s conclusions may not depend on it. It may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“The interchange fee is set by the card association, and in this sense is set cooperatively by the member banks.”
§ The Economics of Two-Sided Markets > Abstract
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Merchants typically accept payment on multiple networks-for example, Visa, Mastercard, American Express, and Discover-as well as via alternatives such as on-line debit cards and personal checks.”
§ The Economics of Two-Sided Markets > Pricing
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Newspapers are a canonical two-sided market, where the newspaper provides a platform for communication from advertisers to consumers.”
§ The Economics of Two-Sided Markets > Abstract
Load-bearingStrength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“For instance, in any market, prices typically fall as the price elasticity of demand increases, but in a two-sided market the effect can be even larger: The low price on one side not only attracts elastic consumers on that side but also, as a result, leads to higher prices or more participation on the other side.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“But now, lowering the consumer price attracts consumers from the competing platform, which degrades the value of the competitor to buyers, and hence leads to a larger increase in buyer interest in the original platform.”
§ The Economics of Two-Sided Markets > Pricing
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“The merchant's fee is set to reflect this cost and is usually only slightly higher than the interchange fee.”
§ The Economics of Two-Sided Markets > Abstract
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“A successful operating system requires consumer adoption as well as software development by software vendors.”
§ The Economics of Two-Sided Markets > Abstract
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
In the paper
“Thus, discrimination increases the value extracted on one side, which leads to lower prices on the other side which has now become more valuable (Weyl, 2009).”
§ The Economics of Two-Sided Markets > Pricing
What the sources say
- Not checked — no full text of the sourcecites Weyl, 2009 source
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“That is, we can characterize Microsoft as managing a three-sided market between consumers, software providers, and hardware providers, whereas Apple manages only a two-sided market between consumers and software providers.”
§ The Economics of Two-Sided Markets > Openness
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Note that Mastercard and Visa incorporated in 2006 and 2007 and so are organized as for-profit corporations rather than as associations or cooperatives.”
§ The Economics of Two-Sided Markets > Abstract
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Payment cards like Visa, MasterCard, and American Express are two-sided in the sense that they require consumer usage and merchant acceptance to be successful.”
§ The Economics of Two-Sided Markets > Abstract
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Similarly, it is common to establish a technological standard through free distribution of a basic product (for instance, Adobe's free distribution of Reader popularizes the PDF standard) and then profit on peripheral products (such as Adobe Acrobat).”
§ The Economics of Two-Sided Markets > Pricing
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Similarly, a successful payment card requires both consumer usage and merchant acceptance, where both consumers and merchants value each others' participation.”
§ The Economics of Two-Sided Markets > Abstract
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“In markets with multiple newspapers, consumers typically read only one newspaper whereas advertisers appear in all of them.”
§ The Economics of Two-Sided Markets > Pricing
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In addition, there is a more subtle effect through mark-ups: advertising to one side that raises the mark-up on that side leads to lower prices on the other side, and vice versa.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
In the paper
“If there is no antitrust violation in setting interchange fees but the equilibrium outcome diverges from the social optimum (as in Rochet and Tirole, 2002), then price regulation may be a reasonable solution.”
§ The Economics of Two-Sided Markets > Regulation
What the sources say
- Not checked — no full text of the sourcecites Rochet and Tirole, 2002 source
Tests✓ Asserted: passes✗ Checkable: fails✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence. It may state two separate claims as one.
In the paper
“As such, it is unlikely that the theory of two-sided markets will have much effect here, although there is some movement to make predatory pricing easier to prosecute(Brodley, Bolton, and Riordan, 2000).”
§ The Economics of Two-Sided Markets > y I thank Mark Armstrong, David Evans, Marshall Van Alstyne, Pai Ying Li, and Glen
What the sources say
- Not matchedcites Brodley, Bolton, and Riordan, 2000
Couldn’t be matched to a paper in Crossref, so it can’t be checked.
Strength:hedged· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
- Not matched
None of the sources cited for this claim have been checked yet.
In the paper
“If the sellers cannot differentiate aside from adopting a standard, they must differentiate by choosing separate standards, which leads to the adoption of multiple standards (Ellison and Fudenberg, 2003) or even adoption failure (Augereau, Greenstein, and Rysman, 2006;Kretschmer, 2008).”
§ The Economics of Two-Sided Markets > Openness
What the sources say
- Not checked — no full text of the sourcecites Ellison and Fudenberg, 2003 source
- Not matchedcites Augereau, Greenstein, and Rysman, 2006;Kretschmer, 2008
Couldn’t be matched to a paper in Crossref, so it can’t be checked.
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
In the paper
“For instance, cash is more costly to process than credit card payments, whereas electronic debit is cheaper (Reserve Bank of Australia, 2007).”
§ The Economics of Two-Sided Markets > Regulation
What the sources say
- Not matchedcites Reserve Bank of Australia, 2007
Couldn’t be matched to a paper in Crossref, so it can’t be checked.
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it. It may state two separate claims as one.
- Not matched
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The economics of two-sided markets can play an important role in guiding the determination of the optimal fee, although it does not appear to have done so to date.”
§ The Economics of Two-Sided Markets > Regulation
Strength:hedged· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it. It may state two separate claims as one.
In the paper
“Knittel and Stango (2008) argue that deregulating surcharges for ATMs had a major role in causing the expansion.”
§ The Economics of Two-Sided Markets > Regulation
What the sources say
- Not checked — no full text of the sourcecites Knittel and Stango (2008) source
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Two-sided markets typically have network effects and as such are likely to tip toward a single dominant platform.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✗ Based: failsProbably not a substantial claim. The paper may give no reason why it holds. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Hence, fees were deregulated in this market, in contrast with the current trend toward regulation in payment cards.”
§ The Economics of Two-Sided Markets > Regulation
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
- Rests on an assumption: Increased prices led to more consumer usage rather than less because ATMs were much more conveniently located.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Thus, persuasive advertising on one side can lead to lower prices on the other side, whereas informative advertising on one side leads to higher prices on the other.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“Video games compete with a host of leisure activities for consumer attention, but not for game developer attention.”
§ The Economics of Two-Sided Markets > Antitrust
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“It seems clear that the economics of two-sided markets is highly relevant for pricing analysis in antitrust.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✗ Checkable: fails✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The literature has important policy implications for pricing analysis, an important feature of regulation and a large part of antitrust analysis.”
§ The Economics of Two-Sided Markets > Conclusion
Load-bearingStrength:plain· not yet calibratedTests✓ Asserted: passes✗ Checkable: fails✓ Load-bearing: passes✗ Based: failsProbably not a substantial claim. It may be too vague to check against evidence. The paper may give no reason why it holds.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In general, my prediction is that two-sided analysis will grow in importance in areas where pricing analysis is important, whereas the effect will be more limited in exclusionary conduct cases such as monopolization and conditional sales.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✗ Based: failsProbably not a substantial claim. The paper may give no reason why it holds. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“However, the technical legal question was about cooperation and the nature of the Visa association, not about two-sided markets.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
The paper states this without a source or data behind it here, so there is nothing to check it against. The quote shows it is in the paper.
In the paper
“For example, newspapers compete with billboards for advertising, but not for consumer readership.”
§ The Economics of Two-Sided Markets > Antitrust
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The interchange fees imposed in Australia may or may not raise social welfare, but the process for determining the fee surely diverges from the prescription of the economics of two-sided markets.”
§ The Economics of Two-Sided Markets > Regulation
Load-bearingStrength:hedged· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Here, pricing issues were crucial and two-sided market concerns were relatively important.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Economic theory suggests that any determination of the optimal interchange fee should consider the marginal costs of serving both consumers and merchants as well as price elasticities of demand and interaction elasticities of demand to usage on the other side of the market.”
§ The Economics of Two-Sided Markets > Regulation
Load-bearingStrength:hedged· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✗ Based: failsProbably not a substantial claim. The paper may give no reason why it holds.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“From different perspectives, the same business may have different numbers of sides.”
§ The Economics of Two-Sided Markets > y I thank Mark Armstrong, David Evans, Marshall Van Alstyne, Pai Ying Li, and Glen
Strength:hedged· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Certain more subtle strategies are more common in two-sided than in onesided markets.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedCausal:correlational· not yet calibratedTests✓ Asserted: passes✗ Checkable: fails✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence. The paper’s conclusions may not depend on it.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Advertising on one side raises participation and usage on that side, which raises demand on the other side, and so advertising on one side can lead to higher prices on the other.”
§ The Economics of Two-Sided Markets > Other Strategies
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“That is, determining the difference between optimal and equilibrium prices has little role in establishing the legality of an action in a monopolization case (although it may have an important role in determining the requisite question of whether a firm has market power).”
§ The Economics of Two-Sided Markets > Antitrust
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
- Rests on an assumption: Inefficient pricing is not an antitrust violation by itself.
- Rests on an assumption: Monopolization and vertical contracting cases typically hinge on whether a firm has excluded competitors from the market in a way that did not benefit consumers or reduce costs.
In the paper
“The court deemed that system unworkable, and hence the collectively set interchange fee was legal as it was necessary to provide the Visa card.”
§ The Economics of Two-Sided Markets > Antitrust
What the sources say
- Not matchedcites National Bancard Corp.(Nabanco) v. Visa U.S.A., Inc. (779 F.2d 592 [11 th Cir.1986])
Couldn’t be matched to a paper in Crossref, so it can’t be checked.
Tests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
- Not matched
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The Internet service providers can be seen as platforms matching Internet users to content providers and hence, the concept of net neutrality is often evaluated from the perspective of two-sided markets.”
§ The Economics of Two-Sided Markets > y I thank Mark Armstrong, David Evans, Marshall Van Alstyne, Pai Ying Li, and Glen
Strength:plain· not yet calibratedCausal:direct· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The economics of two-sided markets provides insights primarily into pricing and so is likely to be particularly important for the parts of antitrust enforcement that focus on pricing issues.”
§ The Economics of Two-Sided Markets > Antitrust
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“In a two-sided market, we should consider multiple prices and, potentially, different measures of competition for each side.”
§ The Economics of Two-Sided Markets > Antitrust
Load-bearingStrength:hedged· not yet calibratedTests✓ Asserted: passes✗ Checkable: fails✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“The economics of two-sided markets are important for a wide variety of public policy issues.”
§ The Economics of Two-Sided Markets > Public Policy
Strength:plain· not yet calibratedTests✓ Asserted: passes✗ Checkable: fails✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. It may be too vague to check against evidence. The paper’s conclusions may not depend on it. The paper may give no reason why it holds.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Pricing issues are the main thrust of a great deal of economic regulation, and as such, the economics of two-sided markets can make a large contribution.”
§ The Economics of Two-Sided Markets > Regulation
Strength:plain· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✗ Checkable: fails✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. It may be too vague to check against evidence. The paper’s conclusions may not depend on it. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Also, a platform firm must be concerned not only with its own quality and advertising, but also that of the vendors who operate over its network.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✓ Based: passesProbably not a substantial claim. The paper’s conclusions may not depend on it.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Similarly, the effects of quality investment will depend on whether it generates relatively price-elastic or -inelastic consumers on the margin, and on whether it attracts consumers that are more or less responsive to participation on the other side.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedCausal:conditional· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Pricing was not a primary issue in this calculation, and it is unclear that two-sided market economics offers much guidance.”
§ The Economics of Two-Sided Markets > Antitrust
Strength:plain· not yet calibratedSingle caseTests✓ Asserted: passes✓ Checkable: passes? Load-bearing: unclear✓ Based: passesIt may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“A network of ATMs is two-sided in the sense that it is more valuable to consumers if it can reach more banks and more valuable to banks if more consumers use it, which is often a function of how many locations a network reaches.”
§ The Economics of Two-Sided Markets > Regulation
Tests✓ Asserted: passes✓ Checkable: passes✓ Load-bearing: passes✓ Based: passesProbably not a substantial claim. It may state two separate claims as one.
A conclusion the paper draws from its own results — it cites no other source for it, so there is none to check. The quote shows it is in the paper.
In the paper
“Common strategies in one-sided markets like innovation, advertising, and quality investment can take on added dimensions in a two-sided market.”
§ The Economics of Two-Sided Markets > Other Strategies
Strength:plain· not yet calibratedCausal:correlational· not yet calibratedTests✓ Asserted: passes✓ Checkable: passes✗ Load-bearing: fails✗ Based: failsProbably not a substantial claim. The paper’s conclusions may not depend on it. The paper may give no reason why it holds.
The paper relies on this without support.
Two-sidedness may exist in practically all markets.
“That is, although two-sidedness may exist in practically all markets, it is not always quantitatively important.”
The paper relies on this without support.
The difference in industries between the two-sided markets literature and the network effects literature is not crucial.
“However, the difference in industries is not crucial, and there are exceptions on both sides.”
The paper relies on this without support.
The two-sided markets literature and the network effects literature have a lot in common.
“Many papers that study operating systems identify themselves with network effects rather than two-sided markets so perhaps this example is less canonical, but as I have argued, the two literatures have a lot in common.”
The paper relies on this without support.
Antitrust authorities typically use the size of cross-price elasticities to determine what products should be included in a relevant market.
“Antitrust authorities typically use the size of cross-price elasticities to determine what products should be included in a relevant market.”
The paper relies on this without support.
Inefficient pricing is not an antitrust violation by itself.
“Although inefficient pricing is the hallmark of the economic criticism of monopoly power, inefficient pricing is not an antitrust violation by itself.”
The paper relies on this without support.
Monopolization and vertical contracting cases typically hinge on whether a firm has excluded competitors from the market in a way that did not benefit consumers or reduce costs.
“Monopolization and vertical contracting cases typically hinge on whether a firm has excluded competitors from the market in a way that did not benefit consumers or reduce costs.”
The paper relies on this without support.
In December 2007, the European Commission ruled that the interchange fee at MasterCard for cross-border transactions is collusive and illegal.
“In December 2007, the European Commission ruled that the interchange fee at MasterCard (for crossborder transaction) is collusive and illegal.”
The paper relies on this without support.
MasterCard can exist with a zero-interchange fee.
“Since MasterCard can exist with a zero-interchange fee, the exemption to the joint behavior was eliminated.”
The paper relies on this without support.
Increased prices led to more consumer usage rather than less because ATMs were much more conveniently located.
“Furthermore, increased prices led to more consumer usage rather than less because ATMs were much more conveniently located.”
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
Each contradiction between two passages listed here was confirmed by an independent check.
Conflicting RAND journal volumes for the same 2006 issue
MinorThe references assign volume 37, issue 3 and volume 35, issue 3 of The RAND Journal of Economics to 2006. Both cannot identify that journal's third issue in the same year.
“Armstrong, Mark. 2006. "Competition in Two- Sided Markets." The RAND Journal of Economics, 37(3): 668 -91.”
“Rochet, Jean-Charles, and Jean Tirole. 2006. "Two-Sided Markets: A Progress Report." The RAND Journal of Economics, 35(3): 645-67.”
Citations
Cites
Platform Competition in Two-Sided Markets
Rochet, J.-C., & Tirole, J. (2003) · Journal of the European Economic Association · doi:10.1162/154247603322493212 · Cited by 5,642
Competition and Innovation: An Inverted-U Relationship*
Aghion, P., Bloom, N., Blundell, R. W., Griffith, R., & Howitt, P. W. (2005) · The Quarterly Journal of Economics · doi:10.1093/qje/120.2.701 · Cited by 3,769
Competition in two-sided markets
Armstrong, M. (2006) · The RAND Journal of Economics · doi:10.1111/j.1756-2171.2006.tb00037.x · Cited by 3,315
Two-sided markets: A progress report
Rochet, J.-C., & Tirole, J. (2006) · The RAND Journal of Economics · doi:10.1111/j.1756-2171.2006.tb00036.x · Cited by 2,994
Competition and innovation: an inverted U relationship
Aghion, P., Bloom, N., Blundell, R. W., Griffith, R., & Howitt, P. W. (2017) · doi:10.1920/wp.ifs.2002.0204 · Cited by 2,113
Chicken & Egg: Competition among Intermediation Service Providers
Caillaud, B., & Jullien, B. (2003) · The RAND Journal of Economics · doi:10.2307/1593720 · Cited by 1,799
Two-Sided Network Effects: A Theory of Information Product Design
PARKER, G. G., & Alstyne, M. V. (2005) · Management Science · doi:10.1287/mnsc.1050.0400 · Cited by 1,684
Competition and Innovation: An Inverted-U Relationship*
Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005) · Quarterly Journal of Economics · doi:10.1162/0033553053970214 · Cited by 995
Open Platform Strategies and Innovation: Granting Access vs. Devolving Control
Boudreau, K. J. (2010) · Management Science · doi:10.1287/mnsc.1100.1215 · Cited by 984
Journal of the European Economic Association
European Economic Association (2017) · Journal of the European Economic Association · doi:10.1111/(issn)1542-4774 · Cited by 859
Flagged first, then by citations
Research works printed but not linked: 5
- Boudreau Kevin, 2007, MIT Sloan Research Paper, 4611
- Brodley Joseph F, 2000, Georgetown Law Journal, 88, 2239
- Ellison Glenn, 2009, Econometrica, 77, 427
- Evans David S, 2003, Yale Journal on Regulation, 20, 325
- Rysman Marc, 2007, Competition Policy International, 3, 197
Cited by
Sorted by citations
Items 101–200 of 1,281
Zabel, C., O’Brien, D., & Natzel, J. (2023) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2023.122562 · Cited by 85
Zolnowski, A., Weiss, C., & Böhmann, T. (2014) · Hawaii International Conference on System Sciences (HICSS) · doi:10.1109/hicss.2014.96 · Cited by 75
“The case is suited because of its intricacy of being a multisided platform, connecting several distinct user groups in a network and creating various values for them by their interaction [8, 36].”
BackgroundMarket Power Screens Willingness-to-Pay*
Weyl, E. G., & Tirole, J. (2012) · The Quarterly Journal of Economics · doi:10.1093/qje/qjs032 · Cited by 75
Estimating Network Effects in Two-Sided Markets
Hinz, O. F., Otter, T., & Skiera, B. (2020) · Journal of Management Information Systems · doi:10.1080/07421222.2019.1705509 · Cited by 80
“In two-sided markets, an intermediary provides a platform for interactions between two distinct customer populations [35, 38].”
BackgroundNew market development of platform ecosystems: A case study of the Nintendo Wii
Inoue, Y., & Tsujimoto, M. (2017) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2017.01.017 · Cited by 70
Give Away Your Digital Services
Trabucchi, D., Buganza, T., & Pellizzoni, E. (2017) · Research-Technology Management · doi:10.1080/08956308.2017.1276390 · Cited by 86
“In this model, the subsidized side is the one with the higher demand elasticity, where a price cut can generate a large increase in demand, making the market more valuable on the other side (Rysman 2009).”
BackgroundValue creation in software service platforms
Haile, N., & Altmann, J. (2015) · Future Generation Computer Systems · doi:10.1016/j.future.2015.09.029 · Cited by 72
Digital strategies for two-sided markets: A case study of shopping malls
Frishammar, J., Cenamor, J., Cavalli-Björkman, H., Hernell, E., & Carlsson, J. (2018) · Decision Support Systems · doi:10.1016/j.dss.2018.02.003 · Cited by 71
An Economic Policy Perspective on Online PlatformsPreprint
Martens, B. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2783656 · Cited by 73
MULTISIDED PLATFORMS AND MARKETS: A SURVEY OF THE THEORETICAL LITERATURE
Sanchez-Cartas, J. M., & León, G. (2021) · Journal of Economic Surveys · doi:10.1111/joes.12409 · Cited by 70
Entry of FinTech Firms and Competition in the Retail Payments Market
Jun, J., & Yeo, E. (2016) · Asia-Pacific Journal of Financial Studies · doi:10.1111/ajfs.12126 · Cited by 69
Measuring Consumer Sensitivity to Audio Advertising: A Field Experiment on Pandora Internet RadioPreprint
Huang, J., Reiley, D., & Riabov, N. M. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3166676 · Cited by 66
“Free, advertising-supported content is a particularly large and interesting class of two-sided markets (Rysman (2009)), including websites as diverse as Yahoo, Google, Facebook, YouTube, CNN.com, and a variety of other online news and entertainment sites.”
BackgroundReducing food waste through digital platforms: A quantification of cross-side network effects
Mullick, S., Raassens, N., Haans, H., & Nijssen, E. J. (2020) · Industrial Marketing Management · doi:10.1016/j.indmarman.2020.09.021 · Cited by 67
Natural Monopolies in Digital Platform Markets
Ducci, F. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108867528 · Cited by 70
How do Big Bang Disruptors look like? A Business Model perspective
Trabucchi, D., Talenti, L., & Buganza, T. (2019) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2019.01.009 · Cited by 67
“On the other, the payper-usage and the eventually the purchase of the access is typical of multi-sided platforms (Rochet and Tirole, 2003; 2006; Rysman, 2009).”
BackgroundCompetition and antitrust in Internet markets
Haucap, J., & Stühmeier, T. (2016) · Edward Elgar Publishing eBooks · doi:10.4337/9780857939852.00017 · Cited by 76
“A market is typically called two-sided or even multi-sided if indirect network effects are of major importance (Rochet and Tirole, 2003, 2006; Wright, 2004; Armstrong, 2006; Rysman, 2009.”
BackgroundGarz, S., Xavier Giné, A., Karlan, D., Mazer, R., Sanford, C., & Zinman, J. (2020) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-071020-012008 · Cited by 77
Bohnsack, R., Pinkse, J., & Kolk, A. (2014) · Research Policy · doi:10.1016/j.respol.2013.10.014 · Cited by 85
“Examples of such archetypes are the razor-and-blade business model that used to dominate the printing business (Chesbrough and Rosenbloom, 2002) and instant photography (Tripsas and Gavetti, 2000), or the double-sided market business model in which a firm creates an exchange platform for other producers and customers,…”
Safeguarding Public Interests in the Platform Economy
Frenken, K., van Waes, A., Pelzer, P., Smink, M., & van Est, R. (2019) · Policy & Internet · doi:10.1002/poi3.217 · Cited by 82
“This is why most platforms, at least initially, tend to offer the service for free to one side to build a critical mass, and only charge the other side to gain revenue (Rysman, 2009).”
BackgroundTwo-part tariff competition between two-sided platforms
Reisinger, M. (2014) · European Economic Review · doi:10.1016/j.euroecorev.2014.03.005 · Cited by 63
The streaming industry and the platform economy: An analysis
Chalaby, J. K. (2023) · Media Culture & Society · doi:10.1177/01634437231210439 · Cited by 115
“The video game market provides a case in point, with game publishers and gamers interacting through a console, just as debit cards bring together merchants and consumers (Rochet and Tirole, 2003; Rysman, 2009).”
BackgroundCompetition between exchanges: A research agenda
Estelle Cantillon, Z., & Yin, P.-L. (2010) · International Journal of Industrial Organization · doi:10.1016/j.ijindorg.2010.12.001 · Cited by 62
“One standard insight from the two-sided market literature (e.g. Rochet and Tirole, 2006 or Rysman, 2009 for general introductions) is that pricing on one side of the market will depend not only on the elasticity of demand on that side of the market but also on the value of “consumers” of that side…”
BackgroundThe impact of regulation on innovation
Blind, K. (2016) · Edward Elgar Publishing eBooks · doi:10.4337/9781784711856.00022 · Cited by 64
“in the area of wireless communication, or on two sided markets (Rysman 2009) on innovation.”
BackgroundTake me on a ride: The role of environmentalist identity for carpooling
Hartl, B., Kamleitner, B., & Holub, S. (2020) · Psychology and Marketing · doi:10.1002/mar.21340 · Cited by 63
“Carpooling P2P platforms represent two‐sided markets (Eisenmann et al., 2006; Rysman, 2009), thus, the platforms' marketing need to target two sets of agents, which interact through the platform: private car owners and users seeking a ride.”
BackgroundCodagnone, C., Fabienne, A., & Biagi, F. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2784774 · Cited by 66
Huang, L., Dou, Y., Liu, Y., Wang, J., Chen, G., Zhang, X., & Wang, R. (2021) · Fundamental Research · doi:10.1016/j.fmre.2021.08.006 · Cited by 63
The role of complementary products on platform adoption: Evidence from the video console market
Cenamor, J., Usero, B., & Fernández, Z. (2013) · Technovation · doi:10.1016/j.technovation.2013.06.007 · Cited by 68
Towards food platforms? An analysis of online food provisioning services in Italy
Oncini, F., Bozzini, E., Forno, F., & Magnani, N. (2020) · Geoforum · doi:10.1016/j.geoforum.2020.06.004 · Cited by 63
Unpaid Crowd Complementors: The Platform Network Effect MiragePreprint
Boudreau, K. J., & Jeppesen, L. B. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2475034 · Cited by 63
Three characteristics of technology competition by IoT-driven digitization
Ahn, S. (2020) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2020.120062 · Cited by 61
Digital platforms for food waste reduction: The value for business users
Amaral, D. G., & Orsato, R. J. (2022) · Business Strategy and the Environment · doi:10.1002/bse.3193 · Cited by 67
Park, H., Kim, S., Jeong, Y., & Minshall, T. (2020) · Creativity and Innovation Management · doi:10.1111/caim.12404 · Cited by 68
Liu, H., Xue-rong, L., & Wang, S. (2021) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2021.120827 · Cited by 63
Many-to-many matching and price discrimination
GOMES, R. D. D. B., & Pavan, A. (2016) · Theoretical Economics · doi:10.3982/te1904 · Cited by 61
“Two-sided markets Markets where agents purchase access to other agents are the focus of the literature on two-sided markets (see Rysman 2009 for a survey, and Weyl 2010, Bedre-Defolie and Calvano 2013, and Lee 2013 for recent developments).”
BackgroundEnacting Social Crowdfunding Business Ecosystems: The case of the platform Meridonare
Presenza, A., Abbate, T., Césaroni, F., & Appio, F. P. (2019) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2019.03.001 · Cited by 60
The Economics of Internet Markets
Levin, J. (2011) · National Bureau of Economic Research · doi:10.3386/w16852 · Cited by 64
The Advertising-Financed Business Model in Two-Sided Media Markets
Anderson, S. P., & Jullien, B. (2015) · Handbook of media economics · doi:10.1016/b978-0-444-62721-6.00002-0 · Cited by 58
“9 phenomenon mentioned by Rysman (2009), that a stronger advertising side (a rise in the revenue per visitor) implies less is earned on the other side because then there is more incentive to attract viewers.”
BackgroundLafuente, E., Ács, Z. J., & Szerb, L. (2022) · Journal of Small Business Management · doi:10.1080/00472778.2022.2100895 · Cited by 62
“Digital technologies are at the core of the value proposition of platforms, and advances in such technologies reduced experimentation costs, thus promoting innovations (Rysman, 2009; Von Briel et al., 2018).”
BackgroundA Business Model Framework to Characterize Digital Multisided Platforms
Ardolino, M., Saccani, N., Adrodegari, F., & Perona, M. (2020) · Journal of Open Innovation Technology Market and Complexity · doi:10.3390/joitmc6010010 · Cited by 57
“Scholars often use the term MSP interchangeably with other ones such as multi-sided markets [4,33], platform-based markets [34], platform ecosystems [19,35] and marketplaces [26].”
BackgroundMethodExternalities in Payment Card Networks: Theory and Evidence
Chakravorti, S. “. (2010) · Review of Network Economics · doi:10.2202/1446-9022.1199 · Cited by 55
Matchmaking as multi-sided market for open innovation
Holzmann, T., Sailer, K., & Katzy, B. (2014) · Technology Analysis and Strategic Management · doi:10.1080/09537325.2014.913786 · Cited by 56
“Keywords: open innovation; collaborative innovation; matchmaking; matching process; two-sided market; multi-sided market; innovation networks”
BackgroundGuo, J., Jin, S., Zhao, J., Wang, H., & Zhao, F. (2022) · Food Policy · doi:10.1016/j.foodpol.2022.102377 · Cited by 56
“The theory of the platform economy indicates that the market expansion of e-commerce platforms has significant cross-side and sameside network effects, which bring about the improvement of operational efficiency and competitiveness (Armstrong, 2006; Hinz, et al., 2020; Rysman, 2009).”
BackgroundOptimal auction design in two‐sided markets
GOMES, R. D. D. B. (2014) · The RAND Journal of Economics · doi:10.1111/1756-2171.12050 · Cited by 50
“A similar trade-off lies at the heart of the two-sided-markets literature (see Rochet and Tirole (2003) (2006), Armstrong (2006), Caillaud and Jullien (2001) (2003), Evans (2003), Hagiu (2006), Rysman (2009) and Weyl (2010)).”
BackgroundMonetization on Mobile Platforms: Balancing in‐App Advertising and User Base Growth
Ji, Y., Wang, R., & Gou, Q. (2019) · Production and Operations Management · doi:10.1111/poms.13035 · Cited by 55
“Our study is closely related to platform participants’ advertising investment (Albuquerque et al. 2012, Rysman 2009).”
BackgroundSandhu, S., & Arora, S. (2020) · International Journal of Finance & Economics · doi:10.1002/ijfe.2266 · Cited by 54
McGuire, T. G. (2011) · Handbook of health economics · doi:10.1016/b978-0-444-53592-4.00005-0 · Cited by 56
Digital marketing: a new tool for international education
Fierro, I., Gavilanez, J., & Arbeláez, D. C. (2017) · Revista científica Pensamiento y Gestión · doi:10.14482/pege.41.9704 · Cited by 55
Governing online platforms: Competition policy in times of platformization
Just, N. (2018) · Telecommunications Policy · doi:10.1016/j.telpol.2018.02.006 · Cited by 54
“This has been developed, scrutinized and formalized since the early 2000s under the labels of two- or multi-sided markets and equivalents such as intermediation markets or platform markets (e.g., Armstrong, 2006; Caillaud & Jullien, 2003; Evans, 2003; Rochet & Tirole, 2003, 2006; Rysman, 2009).”
BackgroundEffectuation logic in digital business model transformation
Baber, W. W., Ojala, A., & Martinez, R. (2019) · Journal of Small Business and Enterprise Development · doi:10.1108/jsbed-04-2019-0139 · Cited by 69
Disembedded or Deeply Embedded? A Multi-Level Network Analysis of Online Labour Platforms
Tubaro, P. (2021) · Sociology · doi:10.1177/0038038520986082 · Cited by 61
“…hardware or software functionalities to which third-party modules can be added (de Reuver et al., 2018), while ‘multisided’ market economics (Rysman, 2009) insists on so-called ‘network externalities’, whereby a large number of users on one side (for example, car drivers) triggers…”
BackgroundInnovation, openness & platform control
PARKER, G. G., & Alstyne, M. V. (2010) · ACM Conference on Electronic Commerce (EC) · doi:10.1145/1807342.1807357 · Cited by 51
The economics of central bank digital currencyPreprint
Ahnert, T., Assenmacher, K., Hoffmann, P., Leonello, A., Monnet, C., & Porcellacchia, D. (2022) · SSRN Electronic Journal · doi:10.2139/ssrn.4191600 · Cited by 55
IS THE GOOGLE PLATFORM A TWO-SIDED MARKET?
Luchetta, G. (2013) · Journal of Competition Law & Economics · doi:10.1093/joclec/nht026 · Cited by 52
Boudreau, K. J. (2011) · SSRN Electronic Journal · doi:10.2139/ssrn.1826702 · Cited by 48
“…that that we might begin to understand innovation incentives by likening groups of applications producers on a platform to markets of competing innovators, in which case varying intensity of competition and rivalry should shape innovation incentives (Parker and Van Alstyne 2008, Rysman 2009).”
The Literature Review of Platform Economy
Xue, C., Tian, W., & Zhao, X. (2020) · Scientific Programming · doi:10.1155/2020/8877128 · Cited by 59
Rashid, Z., Noor, U., & Altmann, J. (2021) · Future Generation Computer Systems · doi:10.1016/j.future.2021.05.033 · Cited by 50
A field experiment on workplace norms and electric vehicle charging etiquette
Asensio, O. I., Apablaza, C., Lawson, M. C., & Walsh, S. E. (2021) · Journal of Industrial Ecology · doi:10.1111/jiec.13116 · Cited by 53
“These digital platforms represent two-sidedmarkets that can activate under-utilized capacity in the economy (Rochet & Tirole, 2003; Rysman, 2009).”
BackgroundOpening the envelope of health care information systems research
Davidson, E., Baird, A. M., & Prince, K. (2018) · Information and Organization · doi:10.1016/j.infoandorg.2018.07.001 · Cited by 57
“As technology reduced the costs of participating in networks, switching costs in two-sided networks became a popular focus of research (e.g., Rysman, 2009).”
BackgroundTheorizing Journalism’s Institutional Relationships: An Elaboration of Gatekeeping Theory
Vos, T. P., & Russell, F. M. (2019) · Journalism Studies · doi:10.1080/1461670x.2019.1593882 · Cited by 51
“Monopolistic power is likely when network effects apply (Rysman 2009).”
BackgroundInfluentialWallbach, S., Coleman, K., Elbert, R. M., & Benlian, A. (2019) · Electronic Markets · doi:10.1007/s12525-019-00382-7 · Cited by 47
“In general, MSPs constitute an electronic marketplace that enables interaction between two or more groups of actors mediated by a platform provider, where the decisions of a group on one side affect the outcomes of the group(s) on the other side(s) (Hagiu and Wright 2015; Rysman 2009).”
BackgroundThe impact of COVID-19 on the ride-sharing industry and its recovery: Causal evidence from China
WANG, W. J., Miao, W., Liu, Y., Deng, Y., & Cao, Y. (2021) · Transportation Research Part A Policy and Practice · doi:10.1016/j.tra.2021.10.005 · Cited by 49
“…platforms (and the sharing economy in general) highly depends on the interdependence or externality between the two sides of economic agents (Rysman, 2009).2 Therefore, a ride-sharing platform will benefit from the network effect if more drivers work for it.3 It is thus managerially…”
Competition Between Two-Sided Platforms Under Demand and Supply Congestion EffectsPreprint
Bernstein, F., DeCroix, G. A., & Keskin, N. B. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3250224 · Cited by 47
Competition and Competition Policy in a Data-Driven Economy
Haucap, J. (2019) · Intereconomics · doi:10.1007/s10272-019-0825-0 · Cited by 46
Profit or Growth? Dynamic Order Allocation in a Hybrid Workforce
He, E. J., & Goh, J. (2021) · Management Science · doi:10.1287/mnsc.2021.4177 · Cited by 46
Regulating Professional Players in Peer-to-Peer Markets: Evidence from Airbnb
Chen, W., Wei, Z., & Xie, K. (2020) · Management Science · doi:10.1287/mnsc.2022.4480 · Cited by 51
The Economics of Internet Markets
Levin, J. (2013) · Cambridge University Press eBooks · doi:10.1017/cbo9781139060011.003 · Cited by 45
Armstrong, M. (2015) · The Economic Journal · doi:10.1111/ecoj.12254 · Cited by 46
Who Gains and Who Loses from Credit Card Payments? Theory and CalibrationsPreprint
Schuh, S. D., Shy, O., & Stavins, J. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1652260 · Cited by 46
“The interested reader can consult Chakravorti and Shah (2003), Gans and King (2003), Rochet (2003), Wright (2003), Roson (2005), Evans and Schmalensee (2005), Armstrong (2006), Schwartz and Vincent (2006), Bolt and Chakravorti (2008), Hayashi (2008), Rysman (2009), and Verdier (Forthcoming).”
BackgroundWhen do startups scale? Large‐scale evidence from job postings
Lee, S., & Kim, J. D. (2024) · Strategic Management Journal · doi:10.1002/smj.3596 · Cited by 46
Platform-Based Business Models: Insights from an Emerging AI-Enabled Smart Building Ecosystem
Xu, Y., Ahokangas, P., Turunen, M., Mäntymäki, M., & Heikkilä, J. (2019) · Electronics · doi:10.3390/electronics8101150 · Cited by 55
Becoming a pirate: Independence as an alternative to exit in the gig economy
Maffie, M. D. (2022) · British Journal of Industrial Relations · doi:10.1111/bjir.12668 · Cited by 43
Marketplace or reselling? A signalling model
Belhadj, N., Laussel, D., & Resende, J. (2019) · Information Economics and Policy · doi:10.1016/j.infoecopol.2019.100834 · Cited by 44
Vignieri, V. (2020) · Systems Research and Behavioral Science · doi:10.1002/sres.2636 · Cited by 43
Crowdfunding artists: beyond match-making on platforms
Chiesa, C. D., & Dekker, E. (2019) · Socio-Economic Review · doi:10.1093/ser/mwab006 · Cited by 48
Platform Pricing at Sports Card Conventions
Jin, G. Z., & Rysman, M. (2015) · Journal of Industrial Economics · doi:10.1111/joie.12088 · Cited by 41
“For more on network effects, and definitional issues in two-sided markets, see Farrell & Klemperer (2007), Rochet & Tirole (2006) and Rysman (2009). time acting as sellers) to interact with consumers that visit the convention.”
Self-citationThe Role of Interchange Fees in Two-Sided Markets: An Empirical Investigation on Payment Cards
Valverde, S. C., Chakravorti, S. “., & Fernández, F. R. (2015) · The Review of Economics and Statistics · doi:10.1162/rest_a_00502 · Cited by 42
“1 For a broader description of two-sided markets, see Armstrong (2006), Rochet and Tirole (2006b), Rysman (2009), and Weyl (2010).”
BackgroundPLATFORM PRICING IN MIXED TWO‐SIDED MARKETS
Gao, M. (2018) · International Economic Review · doi:10.1111/iere.12298 · Cited by 43
“…exchange platforms that allow users to both post (or send) and view messages (such as bulletin boards, online forums, social networking websites and 1This analysis follows the de nition of two-sidedness from an indirect network externality perspective, as in Armstrong (2006) and Rysman (2009).”
Payment Choice with Consumer Panel DataPreprint
Cohen, M., & Rysman, M. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2308121 · Cited by 43
“The extent of single-homing is an important issue for merchants as they decide what mechanisms to accept, and is an important issue in the literature on two-sided markets (see Rochet & Tirole, 2006; Rysman, 2009).”
BackgroundSelf-citationPlatform Search Design: The Roles of Precision and Price
Zhong, Z. (2022) · Marketing Science · doi:10.1287/mksc.2022.1370 · Cited by 41
The Price of Fragmentation in Mobility-on-Demand Services
Séjourné, T., Samaranayake, S., & Banerjee, S. (2018) · Proceedings of the ACM on Measurement and Analysis of Computing Systems · doi:10.1145/3224425 · Cited by 42
“Finally we note that there is an extensive literature on competition between platforms [17, 18, 23], including in network settings [2, 4, 8] and power markets [10].”
The strategic use of download limits by a monopoly platform
Economides, N., & Hermalin, B. E. (2015) · The RAND Journal of Economics · doi:10.1111/1756-2171.12087 · Cited by 42
Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local NewspapersPreprint
Seamans, R., & Zhu, F. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1694622 · Cited by 42
“6 Finally, our paper most closely resembles recent empirical work by Jin and Rysman (2010) and Kroft and Pope (2008).”
MethodResult(2018) · Emerald Group Publishing Limited eBooks · doi:10.1108/978-1-78743-809-520181009 · Cited by 42
Winner Takes All? The Blockbuster Effect on Crowdfunding Platforms
Wang, Z., Yang, L., & Hahn, J. (2022) · Information Systems Research · doi:10.1287/isre.2022.1154 · Cited by 43
Economic modeling of innovation in the creative industries and its implications
Bae, S. H., & Yoo, K. (2015) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2015.02.010 · Cited by 41
Discrete Pricing and Market Fragmentation: A Tale of Two-Sided Markets
Chao, Y., Yao, C., & Ye, M. (2017) · American Economic Review · doi:10.1257/aer.p20171046 · Cited by 41
Freemium as optimal menu pricing
Sato, S. (2019) · International Journal of Industrial Organization · doi:10.1016/j.ijindorg.2018.12.006 · Cited by 42
“If the solution to the equations (22) and (23) satisfies the inequality apa ≥ t, the equilibrium menu is freemium.”
BackgroundInfluentialPrices and subsidies in the sharing economy
Fang, Z., Huang, L., & Wierman, A. (2019) · Performance Evaluation · doi:10.1016/j.peva.2019.102037 · Cited by 41
Economic patterns in a world with artificial intelligence
Wagner, D. (2020) · Evolutionary and Institutional Economics Review · doi:10.1007/s40844-019-00157-x · Cited by 32
Idle Asset Hunters—The Secret of Multi-sided Platforms
Trabucchi, D., Sanasi, S., Ghezzi, A., & Buganza, T. (2021) · Research-Technology Management · doi:10.1080/08956308.2021.1842677 · Cited by 40
The art of crowdfunding arts and innovation: the cultural economic perspective
Handke, C. W., & Chiesa, C. D. (2022) · Journal of Cultural Economics · doi:10.1007/s10824-022-09444-9 · Cited by 11
Platform Boundary Choices & Governance: Opening-Up While Still Coordinating and Orchestrating
Boudreau, K. J. (2017) · Emerald Group Publishing Limited eBooks · doi:10.1108/s0742-332220170000037009 · Cited by 38
The Hidden Costs of Free Goods: Implications for Antitrust EnforcementPreprint
Gal, M. S., & Rubinfeld, D. L. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2529425 · Cited by 54
Quantity and Quality of Work in the Platform Economy
Bogliacino, F., Codagnone, C., Cirillo, V., & Guarascio, D. (2020) · Springer eBooks · doi:10.1007/978-3-319-57365-6_18-1 · Cited by 46
“Since 2002 (see, for example, Rochet & Tirole 2003, 2006; Parker & Van Alstyne, 2000, 2005; Eisenmann et al, 2006; Rysman, 2009), a growing body of economic literature has analysed situations that broadly qualify as two-sided markets (henceforth 2SMs), although the conditions for two-sidedness (or…”
BackgroundTechnology and Disintermediation in Online Marketplaces
Gu, G. (2024) · Management Science · doi:10.1287/mnsc.2021.02736 · Cited by 39
“On the contrary, if the transaction cost outside the intermediary becomes lower, the two sides have an incentive to break such lock-in condition and seek alternative channels to transact without the intermediary (Rysman, 2009; Edelman & Hu, 2016).”
Platform-based service innovation and system design: a literature review
Fu, W., Wang, Q., & Zhao, X. (2018) · Industrial Management & Data Systems · doi:10.1108/imds-03-2017-0129 · Cited by 43
Platform StrategyPreprint
PARKER, G. G., & Alstyne, M. V. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2439323 · Cited by 66
The success of art galleries: a dynamic model with competition and information effects
Prinz, A. L., Piening, J., & Ehrmann, T. (2014) · Journal of Cultural Economics · doi:10.1007/s10824-014-9217-2 · Cited by 37
Bostoen, F. (2019) · Computer law & security review · doi:10.1016/j.clsr.2019.02.004 · Cited by 37
Diversification and performance in the mobile app market: The role of the platform ecosystem
Roma, P., & Vasi, M. (2019) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2019.07.003 · Cited by 37
“…of users, a crucial aspect of platform ecosystems is related to their governance model, which includes rules for participation (which refers to the concept of platform openness), interactions (i.e., behavior on the platform), and resolution of conflict (Rysman, 2009; Parker and Van Alstyne, 2018).”
Background
Metadata
- Authors
- Rysman, M.
- Affiliations
- Boston University (US)
- Corresponding author
- Rysman, Marc
- ORCID
- Rysman, Marc
- Venue
- Journal of Economic Perspectives
- Publisher
- American Economic Association
- Published
- 2009-08-01
- Volume
- 23
- Issue
- 3
- Pages
- 125-143
- ISSN
- 0895-3309 (ISSN-L)
- OpenAlex
- W1982461819
- Semantic Scholar
- 1c0c366611a5049d783edb97c8fce22b666c4622
- Cited by
- 1,261
- References
- 71
- Citations by year
- 2026: 68 · 2025: 74 · 2024: 77 · 2023: 93 · 2022: 85 · 2021: 95 · 2020: 124 · 2019: 92 · 2018: 87 · 2017: 70 · 2016: 81 · 2015: 57 · 2014: 72 · 2013: 76 · 2012: 47
- FWCI
- 103.49
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- other-oa
- Locations
- The Journal of Economic Perspectives (publishedVersion, other-oa)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Keywords
- two-sided markets, platform intermediaries, network effects, externalities, payment cards, video game consoles, operating systems, competition policy, regulation, public policy, consumer electronics, search engines
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