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Identifying Two-Sided Markets

Author

Listed:
  • Filistrucchi, L.

    (Tilburg University, TILEC)

  • Geradin, D.A.A.G.

    (Tilburg University, TILEC)

  • van Damme, E.E.C.

    (Tilburg University, TILEC)

Abstract

Abstract: We review the burgeoning literature on two-sided markets focusing on the different definitions that have been proposed. In particular, we show that the well-known definition given by Evans is a particular case of the more general definition proposed by Rochet and Tirole. We then identify the crucial elements that make a market two-sided and, drawing from both theory and practice, derive suggestions for the identification of the two-sided nature of a market. Our suggestions are relevant not only for the analysis of traditional two-sided markets, such as newspapers and payment cards, but also for the analysis of many new markets, such as those for online social networks, online search engines and Internet news aggregators.

Suggested Citation

  • Filistrucchi, L. & Geradin, D.A.A.G. & van Damme, E.E.C., 2012. "Identifying Two-Sided Markets," Discussion Paper 2012-008, Tilburg University, Tilburg Law and Economic Center.
  • Handle: RePEc:tiu:tiutil:d69d2808-d3eb-46ea-a6ac-cb3ccaf4b27d
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Stefan Behringer & Lapo Filistrucchi, 2015. "Areeda–Turner in Two-Sided Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(3), pages 287-306, May.
    2. Lapo Filistrucchi & Tobias J. Klein, 2013. "Price Competition in Two-Sided Markets with Heterogeneous Consumers and Network Effects," Working Papers 13-20, NET Institute.
    3. Ivaldi, Marc & Sokullu, Senay & Toru-Delibasi, Tuba, 2015. "Airport Prices in a Two-Sided Market Setting: Major US Airports," TSE Working Papers 15-587, Toulouse School of Economics (TSE).
    4. Price, Michael & Tamm, Gerrit & Stantchev, Vladimir, 2012. "SaaS marketplaces: Visions from theory and experience from practice," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72513, International Telecommunications Society (ITS).
    5. 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.

    More about this item

    Keywords

    two-sided markets; platforms; network effects;

    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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