IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v13y2021i2p35-67.html
   My bibliography  Save this article

Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising

Author

Listed:
  • Minjae Song

Abstract

In two-sided markets, two groups of agents interact through platforms. Because agents' decision to join a platform is affected by the presence of agents on the other side, their interactions create indirect network externalities and make platforms' strategies different from those of firms in one-sided markets. In this paper, I use a structural model to show that platforms may take a loss on one side of the market to make a profit on the other side and that platform mergers may benefit some agents by lowering prices or attracting more agents on the other side of the market.

Suggested Citation

  • Minjae Song, 2021. "Estimating Platform Market Power in Two-Sided Markets with an Application to Magazine Advertising," American Economic Journal: Microeconomics, American Economic Association, vol. 13(2), pages 35-67, May.
    • Handle: RePEc:aea:aejmic:v:13:y:2021:i:2:p:35-67
    DOI: 10.1257/mic.20160052
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20160052
    Download Restriction: no
    File URL: https://doi.org/10.3886/E115882V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20160052.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20160052.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20160052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chinonso E. Etumnu, 2022. "A competitive marketplace or an unfair competitor? An analysis of Amazon and its best sellers ranks," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 924-937, September.
    2. Affeldt, P. & Argentesi, E. & Filistrucchi, Lapo, 2021. "Estimating Demand with Multi-Homing in Two-Sided Markets," Other publications TiSEM 1317bf39-d02e-4f61-a34f-e, Tilburg University, School of Economics and Management.
    3. Bruno Jullien & Alessandro Pavan & Marc Rysman, 2021. "Two-sided markets, pricing, and network effects," Post-Print hal-03828345, HAL.

    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:13:y:2021:i:2:p:35-67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.