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Competition in two-sided markets
Competition in two-sided markets
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Competition in two-sided markets
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Competition in two-sided markets
Competition in two-sided markets

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Competition in two-sided markets
Competition in two-sided markets
Journal Article

Competition in two-sided markets

2006
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Overview
Many markets involve two groups of agents who interact via \"platforms,\" where one group's benefit from joining a platform depends on the size of the other group that joins the platform. I present three models of such markets: a monopoly platform; a model of competing platforms where agents join a single platform; and a model of \"competitive bottlenecks\" where one group joins all platforms. The determinants of equilibrium prices are (i) the magnitude of the cross-group externalities, (ii) whether fees are levied on a lump-sum or per-transaction basis, and (iii) whether agents join one platform or several platforms.