Market entry into emerging two-sided markets
This note analyzes the impact of indirect network effects in emerging two-sided markets on prices, quantities, profits and market entry assuming market enlargement induced by indirect network effects. Only if indirect network effects are small, the conventional results of market entry apply, although weakened. If, however, the interconnection between the markets is strong, tighter market structures or even monopolies can be optimal.
Volume (Year): 32 (2012)
Issue (Month): 3 ()
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