Two-Sided Market with Spillover - Modeling a City
AbstractThe paper explores the analogy between city and two-sided market. It generalizes the results on the pricing strategies of the platform in the two-sided markets for the case when concentration spillover plays an important role. The two-sided market framework is applied to model a city. The paper highlights the importance of the network effect and labor market structure for city size, governance and agglomeration formation. The cases of an isolated city and competing cities are considered.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15428.
Date of creation: 2009
Date of revision:
Two-sided markets; Industrial organization; Urban economics; Concentration spillover; City; Labor matching market;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-30 (All new papers)
- NEP-GEO-2009-05-30 (Economic Geography)
- NEP-MIC-2009-05-30 (Microeconomics)
- NEP-MKT-2009-05-30 (Marketing)
- NEP-NET-2009-05-30 (Network Economics)
- NEP-URE-2009-05-30 (Urban & Real Estate Economics)
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