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A Strategic Guide on Two-Sided Markets Applied to the ISP Market

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  • Cortade, Thomas

Abstract

This paper looks at a new body of literature that deals with two-sided markets and focuses on the Internet Service Provider (ISP) segment. ISPs seem to act as a platform enabling transactions between web sites and end consumers. We propose a strategic guide for ISPs that covers features of two-sided markets such as strong externalities and discuss how these market characteristics can affect competition policy.

Suggested Citation

  • Cortade, Thomas, 2006. "A Strategic Guide on Two-Sided Markets Applied to the ISP Market," MPRA Paper 2602, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2602
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    File URL: https://mpra.ub.uni-muenchen.de/2602/1/MPRA_paper_2602.pdf
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    References listed on IDEAS

    as
    1. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    2. Caillaud, Bernard & Jullien, Bruno, 2003. "Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-328, Summer.
    3. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Network effects in the press and advertising industries," LIDAM Discussion Papers CORE 2002062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Jorge A, Ferrando & Jean J, Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Two-Sided Network Effects and Competition : An Application to Media Industries," Working Papers 2004-09, Center for Research in Economics and Statistics.
    5. Laffont, Jean-Jacques & Marcus, Scott & Rey, Patrick & Tirole, Jean, 2003. "Internet Interconnection and the Off-Net-Cost Pricing Principle," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 370-390, Summer.
    6. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
    7. Jullien, Bruno, 2001. "Competing with Network Externalities and Price Discrimination," CEPR Discussion Papers 2883, C.E.P.R. Discussion Papers.
    8. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, December.
    9. Wright Julian, 2004. "One-sided Logic in Two-sided Markets," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nikkhah, Ali & Jordan, Scott, 2022. "A two-sided model of paid peering," Telecommunications Policy, Elsevier, vol. 46(8).
    2. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).
    3. Pieter Ballon & Nils Walravens & Antonietta Spedalieri & Claudio Venezia, 2010. "The Reconfiguration of Mobile Service Provision: Towards Platform Business Models," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 12, Edward Elgar Publishing.
    4. van der Graaf, Shenja & Ballon, Pieter, 2019. "Navigating platform urbanism," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 364-372.
    5. Buchinger, Uschi & Spek, Sander & Ranaivoson, Heritiana & Lindmark, Sven, 2014. "Towards a typology for B2B application platforms," 25th European Regional ITS Conference, Brussels 2014 101382, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Platform; externalities; price allocation; competition policy;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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