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Identifying Two-Sided Markets

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Abstract
We review the burgeoning literature on two-sided markets focusing on the different definitions that have been proposed. In particular, we show how 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.

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  • Lapo Filistrucchi & Damien Geradin & Eric van Damme, 2012. "Identifying Two-Sided Markets," Working Papers - Economics wp2012_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2012_01.rdf
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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. Nett, Lorenz & Hildebrandt, Christian, 2017. "Marktabgrenzung und Marktmacht bei OTT-0- und OTT-1-Diensten – Eine Projektskizze am Beispiel von Instant-Messenger-Diensten," WIK Discussion Papers 416, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    4. 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).
    5. Maria Luisa Stasi, 2019. "Social media platforms and content exposure: How to restore users’ control," Competition and Regulation in Network Industries, , vol. 20(1), pages 86-110, March.
    6. 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).
    7. 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.

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    More about this item

    Keywords

    two-sided markets; platforms; network effects;
    All these keywords.

    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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