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 301–400 of 1,281
The Impact of Digital Technologies on Leadership in Global Processes: from Platforms to Markets?
Данилин, И. В. (2020) · MGIMO Review of International Relations · doi:10.24833/2071-8160-2020-1-70-100-116 · Cited by 23
Payment Choice and the Future of Currency: Insights from Two Billion Retail TransactionsPreprint
Wang, Z., & Wolman, A. L. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2420420 · Cited by 22
Regulating Two-Sided Markets: An Empirical InvestigationPreprint
Valverde, S. C., Chakravorti, S. “., & Fernández, F. R. (2009) · SSRN Electronic Journal · doi:10.2139/ssrn.1511809 · Cited by 20
“Specifically, we study the effects of several regulatory interventions in Spain during 1997 to 1 For a broader description of this market, see Armstrong (2006), Caillaud and Jullien (2003), Jullien (2001), Rochet and Tirole (2006), Rysman (2009), and Weyl (2010).”
BackgroundMarketing Digital : Una nueva herramienta para internacionalizar la educación
santo, U. E., Fierro, I., Arbeláez, D. C., libre, U., Gavilanez, J., & santo, U. E. (2017) · Revista científica Pensamiento y Gestión · doi:10.14482/pege.43.10594 · Cited by 21
“Two Sided Markets are two different groups that provide each other with network benefits (Rysman, 2009).”
Melegati, J., Edison, H., & Wang, X. (2020) · IEEE Transactions on Software Engineering · doi:10.1109/tse.2020.3042610 · Cited by 21
When More is Less: Quality and Variety Trade‐off in Sharing Economy Platforms
Skiti, T., Luo, X., & Lin, Z. (2022) · Journal of Management Studies · doi:10.1111/joms.12807 · Cited by 21
Lehtonen, M. J., Gustafsson, R., & Hassan, L. (2023) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2023.122756 · Cited by 21
How Users Drive Value in Two-Sided Markets: Platform Designs That Matter
Zhou, Z., Zhang, L., & Alstyne, M. V. (2024) · MIS Quarterly · doi:10.25300/misq/2023/17012 · Cited by 28
“The possibility of platform switching can dissipate rent and intensify competition (Rysman, 2009).”
BackgroundOptimal quality threshold of admission in a two-sided farmers’ market
Zheng, Y., & Kaiser, H. M. (2012) · Applied Economics · doi:10.1080/00036846.2012.711941 · Cited by 21
“A two-sided market is the one in which ‘two sets of agents interact through an intermediary or platform, and the decisions of each set of agents affects the outcomes of the other set of agents, typically through an externality’ (Rysman, 2009).”
BackgroundPlateformes, coordination et incitations
de Vogeleer, E., & Lescop, D. (2011) · Management & Avenir · doi:10.3917/mav.046.0200 · Cited by 21
Network effects in two-sided markets: why a 50/50 user split is not necessarily revenue optimal
Voigt, S., & Hinz, O. F. (2015) · BuR - Business Research · doi:10.1007/s40685-015-0018-z · Cited by 21
Price cap regulation in a two-sided market: Intended and unintended consequences
Wang, Z. (2016) · International Journal of Industrial Organization · doi:10.1016/j.ijindorg.2015.12.004 · Cited by 21
“where Π̂ and Π̂ are given by Eqs (10) and (15) above.”
Price Competition in Two-Sided Markets with Heterogeneous Consumers and Network EffectsPreprint
Filistrucchi, L., & Klein, T. J. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2336411 · Cited by 21
Optimal pricing of a two-sided monopoly platform with a one-sided congestion effect
Aloui, C., & Jebsi, K. (2010) · International Review of Economics · doi:10.1007/s12232-010-0110-9 · Cited by 20
“Among others, Anderson and Coate (2005) and Rysman (2004) have focused on the media industry, Hagiu (2006) and Belleflamme and Toulemonde (2009) have cared about the operating system platforms, Wright (2004) have presented what make different two-sided market to one-sided market, and Rysman (2009) have synthesized the…”
BackgroundLiébana-Cabanillas, F. J., Slade, E. L., & Dwivedi, Y. K. (2016) · Explore Bristol Research · Cited by 20
Give Away Your Digital Services: Leveraging Big Data to Capture Value
Trabucchi, D., Buganza, T., & Pellizzoni, E. (2017) · Virtual Community of Pathological Anatomy (University of Castilla La Mancha) · Cited by 20
Will the U.S. and EU telecommunications policies converge? A survey
Vogelsang, I. (2014) · Journal of Industrial and Business Economics · doi:10.1007/s40812-014-0003-0 · Cited by 20
“This phenomenon is well known from the literature on two-sided markets (see Rysman 2009) and from the waterbed effect discussed above.”
ATM withdrawals, debit card transactions at the point of sale and the demand for currency
Valverde, S. C., & Fernández, F. R. (2014) · SERIEs · doi:10.1007/s13209-014-0107-9 · Cited by 20
“4 See, as a reference, Rochet and Tirole (2002, 2003, 2006); Armstrong (2006), Bolt and Chakravorti (2008); Rysman (2009); or Weyl (2010).”
BackgroundBedre-Defolie, Ö., & Calvano, E. (2013) · American Economic Journal: Microeconomics · doi:10.1257/mic.5.3.206 · Cited by 17
Paving the Path for Two-Sided Energy Markets: An Overview of Different Approaches
Khorasany, M., Razzaghi, R., Dorri, A., Jurdak, R., & Siano, P. (2020) · IEEE Access · doi:10.1109/access.2020.3040391 · Cited by 19
“terms, in a two-sided market, two user groups or agents interact through an intermediary or platform to the benefit of both parties, and the decisions of each set of agents affect the outcomes of the other set of agents [5].”
BackgroundDecarolis, F., & Li, M. (2023) · International Journal of Industrial Organization · doi:10.1016/j.ijindorg.2023.102983 · Cited by 20
Marketplace Scalability and Strategic Use of Platform Investment
Li, J., Pisano, G. P., Xu, Y., & Zhu, F. (2023) · Management Science · doi:10.1287/mnsc.2022.4522 · Cited by 20
The video gaming industry: From play to revenue
Baltezarević, R., Baltezarević, B., & Baltezarević, V. (2018) · International Review · doi:10.5937/intrev1804071b · Cited by 19
Two-sided markets in the video game industry
Davidovici-Nora, M., Bourreau, M., & Carey-Libbrecht, L. (2012) · Réseaux · doi:10.3917/res.173.0097 · Cited by 19
“Pour approfondir la théorie des marchés à deux versants, le lecteur pourra consulter les articles d’Armstrong (2006) et de Rochet et Tirole (2006), ainsi que la revue de littérature de Rysman (2009).”
BackgroundSearching for Physical and Digital Media: The Evolution of Platforms for Finding Books
Baye, M. R., Santos, B. D. L., & Wildenbeest, M. R. (2013) · National Bureau of Economic Research · doi:10.3386/w19519 · Cited by 18
“22 Finally, note that we have completely side-stepped the first-order question of what consumers are seeking when they conduct searches for books, digital media, or (more broadly) other products.”
BackgroundCompeting Bandits: Learning under CompetitionPreprint
Mansour, Y., Slivkins, A., & Wu, Z. S. (2017) · arXiv (Cornell University) · doi:10.48550/arxiv.1702.08533 · Cited by 19
“A line of work on platform competition , starting with Rysman (2009), concerns competition be-tween firms ( platforms ) that improve as they attract more users ( network e ff ect ); see Weyl and White (2014) for a recent survey.”
BackgroundExit, Voice, and ForkingPreprint
Berg, A., & Berg, C. (2017) · SSRN Electronic Journal · doi:10.2139/ssrn.3081291 · Cited by 22
Assessing Abuse of Dominance in the Platform Economy: A Case Study of App StoresPreprint
Bostoen, F., & Mândrescu, D. (2020) · SSRN Electronic Journal · doi:10.2139/ssrn.3629118 · Cited by 19
Off-Policy Confidence Interval Estimation with Confounded Markov Decision Process
Shi, C., Zhu, J., Shen, Y., Luo, S., Hongtu Zhu, B., & Song, R. (2022) · Journal of the American Statistical Association · doi:10.1080/01621459.2022.2110878 · Cited by 18
“These companies form a typical two-sided market which enables efficient interactions between passengers and drivers (Rysman 2009) and substantially transforms the transportation landscape of human beings (Jin et al. 2018).”
BackgroundExploring the Success Factors of Mobile Business Ecosystems
Winter, J., Battisti, S., Burström, T., & Luukkainen, S. (2018) · International Journal of Innovation and Technology Management · doi:10.1142/s0219877018500268 · Cited by 19
“Moreover, Hagiu (2009a) and Rysman (2009) discuss that multi-sided platforms could be considered as a generalization of two-sided markets.”
BackgroundBurkard, C., Widjaja, T., & Buxmann, P. (2012) · Business & Information Systems Engineering · doi:10.1007/s12599-011-0199-8 · Cited by 18
E-Books: A Tale of Digital DisruptionPreprint
Gilbert, R. J. (2015) · SSRN Electronic Journal · doi:10.2139/ssrn.2633145 · Cited by 18
Platform Pricing at Sports Card Conventions
Jin, G. Z., & Rysman, M. (2012) · National Bureau of Economic Research · doi:10.3386/w17959 · Cited by 16
“For more on network effects, and definitional issues in two-sided markets, see Farrell & Klemperer (2007), Rochet & Tirole (2006) and Rysman (2009).”
Self-citationThe Economics of Two-Sided Payment Card Markets: Pricing, Adoption and UsagePreprint
McAndrews, J. J., & Wang, Z. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2191177 · Cited by 18
Sheng, M. L., & Fauzi, A. A. (2023) · Computers in Human Behavior · doi:10.1016/j.chb.2023.107923 · Cited by 20
Platform sharing: From reseller to marketplace
Sun, Y., & Liu, J. (2021) · Electronic Commerce Research and Applications · doi:10.1016/j.elerap.2021.101067 · Cited by 17
AN INVESTIGATION OF DIGITAL PAYMENT PLATFORM DESIGNS: A COMPARATIVE STUDY OF FOUR EUROPEAN SOLUTIONS
Kazan, E., & Damsgaard, J. (2014) · Cited by 17
Understanding transaction platform governance and conflicts: A configuration approach
Islam, H. A., Farrell, M. R., Nair, A., & Zhang, J. (2023) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2023.122382 · Cited by 21
The impact of platform business models on the valuations of unicorn companies
Cusumano, M. A., Gawer, A., Yoffie, D. B., von Bargen, S., & Acquay, K. (2024) · Information and Organization · doi:10.1016/j.infoandorg.2024.100521 · Cited by 19
Payment Choice with Consumer Panel Data
Cohen, M., Rysman, M., Cohen, M., et al. (2012) · AgEcon Search (University of Minnesota, USA) · doi:10.22004/ag.econ.148348 · Cited by 17
Self-citationUniversity as an Ecosystem: Institutes of Interdisciplinary Management
Kleiner, G. B. (2019) · Journal of Institutional Studies · doi:10.17835/2076-6297.2019.11.3.054-063 · Cited by 22
Commercialization of Creative Videos in China in the Digital Platform Age
Lin, Z. (2020) · Television & New Media · doi:10.1177/1527476420953583 · Cited by 15
“The term “platform” draws from many different disciplines, but it is especially related to engineering, management, business, and economics (Evans and Schmalensee 2016; Gawer 2014; Rochet and Tirole 2003; Rysman 2009).”
BackgroundEstimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising
Song, M. (2021) · American Economic Journal Microeconomics · doi:10.1257/mic.20160052 · Cited by 17
The impact of multi-homing in a ride-sharing market
Loginova, O., Wang, X. H., & Liu, Q. (2022) · The Annals of Regional Science · doi:10.1007/s00168-022-01120-2 · Cited by 18
“The second implication is that multi-homing also changes competition on the opposite side (Rysman, 2009).”
BackgroundBanerjee, S., & Ramesh Johari, B. (2019) · Springer series in supply chain management · doi:10.1007/978-3-030-01863-4_5 · Cited by 15
Lu, B., & Wang, H. (2016) · Scientific Programming · doi:10.1155/2016/6216052 · Cited by 17
“Until now there is no general agreement on a standard definition of two-sided market, but the definitions of Armstrong (2006) [5], Rysman (2009) [6], and Rochet and Tirole (2010) [7] are widely cited and recognized.”
BackgroundEXPERIMENTATION IN TWO-SIDED MARKETS
Peitz, M., Rady, S., & Trepper, P. (2016) · Journal of the European Economic Association · doi:10.1111/jeea.12175 · Cited by 22
“For a selective survey of this literature, see Rysman (2009); a textbook treatment can be found in Belle amme and Peitz (2010).”
2013 Methods-of-Payment Survey ResultsPreprint
Henry, C., Huynh, K. P., & Shen, R. (2021) · RePEc: Research Papers in Economics · doi:10.34989/sdp-2015-4 · Cited by 17
Strategic Free Information Disclosure for Search-Based Information Platforms
Alkoby, S., Sarne, D., & Das, S. (2015) · Adaptive Agents and Multi-Agents Systems · doi:10.5555/2772879.2773236 · Cited by 15
The platform policy matrix: Promotion and regulation
Kim, J., & Ahn, S. (2024) · Policy & Internet · doi:10.1002/poi3.414 · Cited by 20
“…markets, ecosystem con-fi gurations, and network effects (Armstrong, 2006; Eisenmann et al., 2006; Gawer, 2014; Kim, 2016; Rochet & Tirole, 2003; Rysman, 2009; Van Alstyne et al., 2016), providing foundational insights into business model strategies and the initiation of platform ‐ centric…”
Interorganizational Performance Management: A Co‐evolutionary Model
van Fenema, P. C., & Keers, B. (2018) · International Journal of Management Reviews · doi:10.1111/ijmr.12180 · Cited by 19
Distributed Governance in Multi-sided Platforms: A Conceptual Framework from Case: Bitcoin
Mattila, J., & Seppälä, T. (2018) · Translational systems sciences · doi:10.1007/978-981-10-8956-5_10 · Cited by 25
“According to this view, in a multi-sided market, profits are not only affected by prices—they are also essentially affected by how the prices are allocated to different participant groups (Rochet and Tirole 2003, 2006; Parker and van Alstyne 2005; Boudreau and Hagiu 2008; Rysman 2009).”
BackgroundInfluentialHein, A., Böhm, M., & Krcmar, H. (2018) · Alexandria (UniSG) (University of St.Gallen) · Cited by 16
The evolutionary and disruptive potential of Industrie 4.0
Winter, J. (2020) · Hungarian Geographical Bulletin · doi:10.15201/hungeobull.69.2.1 · Cited by 18
Chasin, F., Paukstadt, U., Ullmeyer, P., & Becker, J. (2020) · Schmalenbach Business Review · doi:10.1007/s41464-020-00102-1 · Cited by 16
An Information Systems Design Theory for Service Network Effects
Janiesch, C., Rosenkranz, C., Scholten, U., & VentureSkies, F. (2020) · Journal of the Association for Information Systems · doi:10.17705/1jais.00642 · Cited by 16
“The increase in use by one group increases the value of a complementary good of another group and vice versa resulting in two- or multisided markets or platforms (Eisenmann, Parker & Van Alstyne, 2006; Parker & Van Alstyne, 2005; Rysman, 2009).”
BackgroundFrom customer to actor value propositions: an analysis of digital transaction platforms
Hokkanen, H., Hänninen, M., Yrjölä, M., & Saarijärvi, H. (2021) · The International Review of Retail Distribution and Consumer Research · doi:10.1080/09593969.2021.1880463 · Cited by 16
“Studies show that network effects, in which each new platform user increases the value of the platform for all other users (Rysman 2009), arguably meaning that the success of a digital transaction platform largely depends on its ability to reach a critical mass of users (Ondrus, Gannamaneni, and…”
BackgroundAssessing Incentives to Increase Digital Payment Acceptance and Usage: A Machine Learning Approach
Allen, J. S., Valverde, S. C., Chakravorti, S. “., Fernández, F. R., & Ardıç, O. P. (2022) · PLoS ONE · doi:10.1371/journal.pone.0276203 · Cited by 31
“This aspect of payment services is often referred to as a two-sided market [5, 6].”
BackgroundBUSINESS MODELS IN TWO-SIDED MARKETS: AN ASSESSMENT OF STRATEGIES FOR APP PLATFORMS
Kouris, I., & Kleer, R. (2012) · Cited by 15
The "Evolution" of Regulation in Uganda’s Mobile Money Sector
Macmillan, R., Paelo, A., & Paremoer, T. (2016) · The African Journal of Information and Communication (AJIC) · doi:10.23962/10539/21627 · Cited by 16
“markets occur when two different sets of users interact through the same platform and for which the decisions of one user group affects the outcomes faced by the other group (Rysman, 2009).”
BackgroundMerchant Acceptance of Payment Cards: “Must Take” or “Wanna Take”?
Bounie, D., François, A., & Hove, L. V. (2016) · Review of Network Economics · doi:10.1515/rne-2017-0011 · Cited by 16
“The payment card industry is a prime example of a so-called two-sided market (Rysman 2009).”
Development of the Digital Economy in the USA and China: Factors and Trends
Данилин, И. В. (2019) · Outlines of global transformations politics economics law · doi:10.23932/2542-0240-2019-12-6-12 · Cited by 16
Cross-Sided Liquidity Externalities
Tham, W. W., Sojli, E., & Skjeltorp, J. A. (2017) · Management Science · doi:10.1287/mnsc.2016.2658 · Cited by 16
Two-Part Tariff Competition between Two-Sided PlatformsPreprint
Reisinger, M. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2314134 · Cited by 15
Mariotto, C. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2800998 · Cited by 16
Parthasarathy, B., Srinivasan, J., Bilahari, M., Kalita, R., Neerukonda, M., Balaraj, M., Singh, A. P., & Graham, M. (2024) · Indian Journal of Labour Economics · doi:10.1007/s41027-024-00522-4 · Cited by 15
“Indeed, firms cannot function smoothly without state regulation (Evans 1995), especially when digital platforms— which are two-sided markets—generate network externalities that affect both competition and customer choice (Rysman 2009).”
Agatz, N. A. H., Fransoo, J. C., Rabinovich, E., & Sousa, R. S. (2025) · Journal of Operations Management · doi:10.1002/joom.1355 · Cited by 15
Competitive Shopbots-Mediated Markets
Sarne, D. (2013) · ACM Transactions on Economics and Computation · doi:10.1145/2509413.2509417 · Cited by 15
“…the platform (e.g., in the case of credit cards, where rewards programs such as contributions to frequent .yer plans are offered); the low price on one side not only attracts elastic consumers but also, as a result, leads to higher prices or more participation on the other side [Rysman 2009].”
BackgroundLoyalty programs in the sharing economy: Optimality and competition
Fang, Z., Huang, L., & Wierman, A. (2020) · Performance Evaluation · doi:10.1016/j.peva.2020.102105 · Cited by 17
Recognition and Work in the Platform Economy: a Normative Reconstruction
Visser, M., & Arnold, T. C. (2021) · Philosophy of Management · doi:10.1007/s40926-021-00172-2 · Cited by 15
“The second characteristic commonly associated with platforms is the existence of cross-side network effects (Evans 2008; Jullien 2005; Parker and Van Alstyne 2005; Rysman 2009).”
BackgroundScalability in Platforms for Local Groceries: An Examination of Indirect Network Economies
Wang, L., Rabinovich, E., & Richards, T. J. (2021) · Production and Operations Management · doi:10.1111/poms.13536 · Cited by 16
“Therefore, viability depends on the realization of indirect network economies between consumers on one side of the platform and vendors on the other (Rochet and Tirole 2006, Rysman 2009).”
BackgroundThe rise of empirical online platform research in the new millennium
Cheng, H. K., Sokol, D. D., & Zang, X. (2023) · Journal of Economics & Management Strategy · doi:10.1111/jems.12571 · Cited by 16
Success within App Distribution Platforms: The Contribution of App Diversity and App Cohesivity
Dibia, V. C., & Wagner, C. (2015) · Hawaii International Conference on System Sciences (HICSS) · doi:10.1109/hicss.2015.515 · Cited by 15
Professional services in the age of platforms: Towards an analytical framework
Nishikawa, B. T., & Orsato, R. J. (2021) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2021.121131 · Cited by 16
China – Electronic Payment Services: discrimination, economic development and the GATS
Hoekman, B. M., & Meagher, N. (2014) · World Trade Review · doi:10.1017/s1474745614000068 · Cited by 15
Strategic Redundancy in the Use of Big Data: Evidence from a Two-Sided Labor Market
Barach, M. A., Kaul, A., Leung, M. D., & Lu, S.-B. (2019) · Strategy Science · doi:10.1287/stsc.2019.0093 · Cited by 15
Regulating Two-Sided Markets: An Empirical InvestigationPreprint
Valverde, S. C., Chakravorti, S. “., & Fernández, F. R. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1522023 · Cited by 14
Collusion, Mergers, and Related Antitrust Issues
Asker, J. W., & Nocke, V. (2021) · National Bureau of Economic Research · doi:10.3386/w29175 · Cited by 15
The Effect of Professional Football Clubs' Legal Structure on Sponsoring Revenue
Dietl, H. M., & Weingaertner, C. (2014) · doi:10.2139/ssrn.2493130 · Cited by 14
Liu, Y., Zhu, X., & Deng, S. (2025) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2025.124142 · Cited by 20
Erfolgsstrategien im Plattformwettbewerb
Dietl, H. (2010) · Schmalenbach Journal of Business Research · doi:10.1007/bf03373747 · Cited by 14
A Case Study of Progressive Formation of Accounting Cloud Services in JAPAN
Mizuno, Y., & Odake, N. (2015) · International Journal of Service Science Management Engineering and Technology · doi:10.4018/ijssmet.2015010101 · Cited by 14
Les développements récents de la littérature sur les plates-formes
Verdier, M. (2016) · Revue économique · doi:10.3917/reco.hs01.0025 · Cited by 14
Private Sales Clubs: A 21st Century Distribution Channel
Betancourt, R. R., Chocarro, R., Cortiñas, M., Elorz, M., & Múgica, J. M. (2016) · Journal of Interactive Marketing · doi:10.1016/j.intmar.2016.09.001 · Cited by 13
Online property brokerage platform and prices of second-hand houses: Evidence from Lianjia’s entry
Zhang, X., Lin, Z., Zhang, Y., Zheng, Y., & Zhang, J. (2021) · Electronic Commerce Research and Applications · doi:10.1016/j.elerap.2021.101104 · Cited by 15
Pricing in C2C Sharing Platforms
Zimmermann, S., Angerer, P., Provin, D., & Nault, B. R. (2018) · Journal of the AIS · doi:10.17705/1jais.00505 · Cited by 17
“In contrast to that work, our formulation presumes potentially asymmetric platform fees, which allows us to operationalize the concept of subsidizing one side over the other, which is common in the two-sided platforms literature (cf., Caillaud & Jullien, 2003; Eisenmann, Parker, & Van Alstyne, 2006; Rysman, 2009).”
BackgroundResultInfluentialDigitization of Retail Payments
Bolt, W., & Chakravorti, S. “. (2012) · Oxford University Press eBooks · doi:10.1093/oxfordhb/9780195397840.013.0005 · Cited by 15
Advertising and Labor Market Matching: A Tour Through the Times
DeVaro, J., & Gürtler, O. (2013) · Journal of Labor Economics · doi:10.1086/693872 · Cited by 14
“11See, for example, Rochet and Tirole (2003, 2006), Parker and Van Alstyne (2005), Rysman (2009), Weyl (2010), and Eisenmann, Parker, and Van Alstyne (2011).”
Wicker, P. V., Weingaertner, C., Breuer, C., & Dietl, H. (2012) · International Journal of Sport Finance · doi:10.1177/155862351200700405 · Cited by 14
“Specifically, this theory demonstrates the ways in which a platform enables interaction among different market participants, which then serves as the key driver of value creation (Lepak et al., 2007; Rysman, 2009).”
McCabe, M. J., Snyder, C. M., & Fagin, A. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2201773 · Cited by 14
The Strategic Use of Download Limits by a Monopoly PlatformPreprint
Economides, N., & Hermalin, B. E. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2363760 · Cited by 14
Making the Most of Platforms: A Policy Research AgendaPreprint
Coyle, D. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2857188 · Cited by 13
What Drives Shifts in Platform Boundaries? An Organizational Perspective
Gawer, A. (2015) · Academy of Management Proceedings · doi:10.5465/ambpp.2015.13765abstract · Cited by 14
The Economics of Zero-Rating and Net NeutralityPreprint
Somogyi, R. (2016) · RePEc: Research Papers in Economics · Cited by 14
The Market Dominance of US Digital Platforms: Antitrust Implications for the European UnionPreprint
Ciriani, S., & Lebourges, M. (2017) · SSRN Electronic Journal · doi:10.2139/ssrn.2977933 · Cited by 14
Yan, J., Wang, S., Xiong, J., Scaringella, L., & Chen, X. (2023) · IEEE Transactions on Engineering Management · doi:10.1109/tem.2023.3336407 · Cited by 13
Driving Open Innovation Through Open Platforms
PARKER, G. G., Petropoulos, G., Alstyne, M. V., & West, J. (2024) · Oxford University Press eBooks · doi:10.1093/oxfordhb/9780192899798.013.23 · Cited by 14
Valuation of Digital Platforms: Experimental Evidence for Google and Facebook
Herzog, B. (2018) · International Journal of Financial Studies · doi:10.3390/ijfs6040087 · Cited by 13
Waiting time in two-sided platforms: The case of the airport industry
Tavalaei, M. M. (2020) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2020.120181 · Cited by 15
Mizuno, Y., & Odake, N. (2015) · Portland International Conference on Management of Engineering and Technology (PICMET) · doi:10.1109/picmet.2015.7273158 · Cited by 13
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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