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One-sided Logic in Two-sided Markets Author info | Abstract | Publisher info | Download info | Related research | Statistics Julian Wright () (Department of Economics, National University of Singapore)
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In this paper, I consider eight basic fallacies that can arise from using conventional wisdom from one-sided markets in two-sided market settings. These fallacies are illustrated using statements made in the context of regulatory investigations into credit card schemes in Australia and the United Kingdom. I discuss how these fallacies may be reconciled by proper use of a two-sided market analysis, making reference to the relevant economics literature where applicable. The analysis is supported by observations on other two-sided markets.
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Article provided by Concept Economics in its journal Review of Network Economics .
Volume (Year): 3 (2004)
Issue (Month): 1 (March)
Pages: 42-63
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Handle: RePEc:rne:rneart:v:3:y:2004:i:1:p:42-63Contact details of provider: Web page: http://www.rnejournal.com
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Keywords: Two-sided markets ; credit cards ; multihoming ; antitrust ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Sujit Chakravorti, 2003.
"Theory of Credit Card Networks: A Survey of the Literature ,"
Review of Network Economics ,
Concept Economics, vol. 2(2), pages 50-68, June.
[Downloadable!]
Other versions: David S. Evans, 2003.
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Review of Network Economics ,
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Other versions: Graeme Guthrie & Julian Wright, 2003.
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Departmental Working Papers
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Mark Armstrong, 2005.
"Competition in Two-Sided Markets ,"
Industrial Organization
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Wilko Bolt & Alexander F. Tieman, 2006.
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Other versions: Nicholas Economides & Joacim Tag, 2007.
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Economides , Nicholas & Tåg, Joacim, 2008.
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Economics Working Papers
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Eric Brousseau & Thierry Penard, 2007.
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Review of Network Economics ,
Concept Economics, vol. 6(2), pages 81-114, June.
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David Bardey & Jean-Charles Rochet, 2009.
"Competition among Health Plans: A Two-Sided Market Approach ,"
DOCUMENTOS DE TRABAJO
005217, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA.
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Anderson, Simon P & Gabszewicz, Jean Jaskold, 2005.
"The Media and Advertising: A Tale of Two-Sided Markets ,"
CEPR Discussion Papers
5223, C.E.P.R. Discussion Papers.
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Simon P., ANDERSON & Jean J., GABSZEWICZ, 2005.
"The media and advertising : a table of two-sided markets ,"
Discussion Papers (ECON - Département des Sciences Economiques)
2005060, Université catholique de Louvain, Département des Sciences Economiques.
[Downloadable!] ANDERSON, Simon P. & GABSZEWICZ, Jean J., 2005.
"The media and advertising : a tale of two-sided markets ,"
CORE Discussion Papers
2005088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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"The Media and Advertising: A Tale of Two-Sided Markets ,"
Handbook of the Economics of Art and Culture ,
Elsevier.
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"Tying in Two-Sided Markets with Multi-Homing ,"
Working Papers
06-04, NET Institute, revised Sep 2006.
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Other versions: Wilko Bolt & Alexander F. Tieman, 2004.
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DNB Working Papers
013, Netherlands Central Bank, Research Department.
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Other versions: Cortade, Thomas, 2006.
"A Strategic Guide on Two-Sided Markets Applied to the ISP Market ,"
MPRA Paper
2602, University Library of Munich, Germany.
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Nicholas Economides, 2007.
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Working Papers
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Other versions: Simon P. Anderson, 2005.
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Virginia Economics Online Papers
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Jean-Charles Rochet & Jean Tirole, 2006.
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Review of Network Economics ,
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Jean-Charles Rochet, 2007.
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