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One-sided Logic in Two-sided Markets

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  • Wright Julian

    (Department of Economics, National University of Singapore)

Abstract

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.

Suggested Citation

  • Wright Julian, 2004. "One-sided Logic in Two-sided Markets," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-21, March.
    • Handle: RePEc:bpj:rneart:v:3:y:2004:i:1:n:3
    DOI: 10.2202/1446-9022.1042
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