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A Strategic Guide on Two-Sided Markets Applied to the ISP Market

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  • Cortade, Thomas

Abstract

This paper looks at a new body of literature that deals with two-sided markets and focuses on the Internet Service Provider (ISP) segment. ISPs seem to act as a platform enabling transactions between web sites and end consumers. We propose a strategic guide for ISPs that covers features of two-sided markets such as strong externalities and discuss how these market characteristics can affect competition policy.

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File URL: http://mpra.ub.uni-muenchen.de/2602/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2602.

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Date of creation: Mar 2006
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Handle: RePEc:pra:mprapa:2602

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Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
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Related research

Keywords: Platform; externalities; price allocation; competition policy;

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References

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  1. Jullien, Bruno, 2001. "Competing with Network Externalities and Price Discrimination," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2883, C.E.P.R. Discussion Papers.
  2. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, De Gruyter, vol. 2(3), pages 1-19, September.
  3. Jean J, Gabszewicz & Didier Laussel & Nathalie Sonnac, 2003. "Network Effects in the Press and Advertising Industries," Working Papers, Centre de Recherche en Economie et Statistique 2003-20, Centre de Recherche en Economie et Statistique.
  4. Wright Julian, 2004. "One-sided Logic in Two-sided Markets," Review of Network Economics, De Gruyter, De Gruyter, vol. 3(1), pages 1-21, March.
  5. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262621509, December.
  6. Laffont, Jean-Jacques & Marcus, Scott & Rey, Patrick & Tirole, Jean, 2003. " Internet Interconnection and the Off-Net-Cost Pricing Principle," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 370-90, Summer.
  7. Jorge A, Ferrando & Jean J, Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Two-Sided Network Effects and Competition : An Application to Media Industries," Working Papers, Centre de Recherche en Economie et Statistique 2004-09, Centre de Recherche en Economie et Statistique.
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Cited by:
  1. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).

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