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Barriers to Entry and Two-Sided Markets: A Research in a Shopping Mall in Istanbul

  • Assist. Prof.Dr. Serkan DILEK

    ()

    (Kastamonu University Faculty of Economics and Administrative Sciences)

  • Assist. Prof.Dr. Nurdan ÇOLAKOGLU

    ()

    (Istanbul Arel University Faculty of Economics and Administrative Sciences)

Registered author(s):

    Two-sided markets are the new issues in economic theory and have been studied since the beginning of the 21th century. Barriers to entry are also important to provide a balanced full competition condition in markets. Generally, incumbent firms don’t want new rivals because new rivals usually mean decreases in profits provided that firms seek profit maximizing. However, some of the previous studies show that profit maximizing firms can find unprofitable to set up barriers to entry in two-sided markets. The aim of this study is to confirm these studies by conducting a research in a shopping mall in Istanbul. To this end, we prepared a survey and applied it in this area. We hope that the results are pioneering for further studies.

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    Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

    Volume (Year): 3 (2013)
    Issue (Month): 4 (April)
    Pages: 542-552

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    Handle: RePEc:asi:aeafrj:2013:p:542-552
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    1. Fabiano Schivardi & Eliana Viviano, 2011. "Entry Barriers in Retail Trade," Economic Journal, Royal Economic Society, vol. 121(551), pages 145-170, March.
    2. Burke, Andrew E. & To, Ted, 2001. "Can reduced entry barriers worsen market performance? A model of employee entry," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 695-704, April.
    3. Mark Armstrong & Julian Wright, 2007. "Two-sided Markets, Competitive Bottlenecks and Exclusive Contracts," Economic Theory, Springer, vol. 32(2), pages 353-380, August.
    4. Jean-Charles Rochet & Jean Triole, 2002. "Platform Competition in Two Sided Markets," FMG Discussion Papers dp409, Financial Markets Group.
    5. Demsetz, Harold, 1982. "Barriers to Entry," American Economic Review, American Economic Association, vol. 72(1), pages 47-57, March.
    6. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
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