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Estimating network effects in two-sided markets without data on prices and quantities

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  • Hildebrand, Thomas

Abstract

I develop a semi-structural approach to identify network effects on two-sided monopoly platforms without data on prices and quantities. When total revenue data is available, the test is sufficient. When separate revenue data is available on the two sides, the test is both necessary and sufficient.

Suggested Citation

  • Hildebrand, Thomas, 2012. "Estimating network effects in two-sided markets without data on prices and quantities," Economics Letters, Elsevier, vol. 117(3), pages 585-588.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:585-588
    DOI: 10.1016/j.econlet.2012.07.036
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    References listed on IDEAS

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    10. Elena Argentesi & Lapo Filistrucchi, 2007. "Estimating market power in a two-sided market: The case of newspapers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1247-1266.
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    Cited by:

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    2. Hossain, Mokter & Mozahem, Najib Ali, 2022. "Drivers’ perceptions of the sharing economy for transport services," Technological Forecasting and Social Change, Elsevier, vol. 179(C).

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    More about this item

    Keywords

    Two-sided markets; Network effects; Semi-structural model;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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