Two-Sided Markets: A Tentative Survey

A recent literature, dealing with special markets characterized by bilateral network externalities, is summarized and critically assessed. Specific features of these markets, in terms of pricing principles and externalities, are discussed first. Afterwards, several issues related to competition between platforms are considered. Finally, implications for competition policy and prospects for future research are briefly discussed.

[1]  Marc Rysman.  *An Empirical Analysis of Payment Card Usage , 2007 .

[2]  Benjamin E. Hermalin,et al.  Your network or mine? The economics of routing rules , 2006 .

[3]  Nicholas Economides,et al.  Two-Sided Competition of Proprietary vs. Open Source Technology Platforms and the Implications for the Software Industry , 2005, Manag. Sci..

[4]  Ulrich Kaiser,et al.  Price structure in two-sided markets: Evidence from the magazine industry , 2006 .

[5]  M. Armstrong.  Competition in Two-Sided Markets ¤ , 2005 .

[6]  Roberto Roson.  Platform Competition with Endogenous Multihoming , 2005 .

[7]  Wilko Bolt,et al.  Skewed Pricing in Two-Sided Markets: An Io Approach , 2005 .

[8]  Alexander F. Tieman,et al.  A Note on Social Welfare and Cost Recovery in Two-Sided Markets , 2004 .

[9]  Markus Reisinger.  Two-Sided Markets with Negative Externalities , 2004 .

[10]  M. Armstrong,et al.  Two-sided Markets, Competitive Bottlenecks and Exclusive Contracts , 2004 .

[11]  Bruno Jullien,et al.  Two-Sided Markets and Electronic Intermediaries , 2004, SSRN Electronic Journal.

[12]  Attila Ambrus,et al.  Network Markets and Consumer Coordination , 2004, SSRN Electronic Journal.

[13]  R. Roson,et al.  Platform Competition in Two-Sided Markets: The Case of Payment Networks , 2004 .

[14]  Xavier Wauthy,et al.  Two-Sided Markets and Price Competition With Multi-Homing , 2004 .

[15]  Jean-Charles Rochet,et al.  Two-Sided Markets: An Overview ∗ , 2004 .

[16]  Andrei Hagiu,et al.  Optimal pricing and commitment in two-sided markets ∗ , 2004 .

[17]  Evangelos Katsamakas,et al.  Design and ownership of two-sided networks: implications for Internet intermediaries , 2004 .

[18]  J. Gabszewicz,et al.  Two-sided network effects and competition : an application to media industries , 2004 .

[19]  Julian Wright,et al.  *Competing Payment Schemes , 2007 .

[20]  Aaron Schiff,et al.  Open and closed systems of two-sided networks , 2003, Inf. Econ. Policy.

[21]  R. Roson.  Incentives for the Expansion of Network Capacity in a “Peering” Free Access Settlement , 2003 .

[22]  Julian Wright,et al.  Pricing in debit and credit card schemes , 2003 .

[23]  Julian Wright.  One-sided Logic in Two-sided Markets , 2003 .

[24]  B. Caillaud,et al.  Chicken & Egg: Competition Among Intermediation Service Providers , 2003 .

[25]  Sujit Chakravorti,et al.  Theory of Credit Card Networks: A Survey of the Literature , 2003 .

[26]  Jacques Crémer,et al.  Connectivity in the Commercial Internet , 2003 .

[27]  Mikko Mustonen,et al.  Copyleft - the economics of Linux and other open source software , 2003, Inf. Econ. Policy.

[28]  David S. Evans.  The Antitrust Economics of Multi-Sided Platform Markets , 2003 .

[29]  J. Rochet,et al.  Tying in Two-Sided Markets and The Impact of the Honor All Cards Rule , 2003 .

[30]  J. Rochet,et al.  Platform competition in two sided markets , 2003 .

[31]  Jean-Charles Rochet,et al.  Cooperation Among Competitors: Some Economics of Payment Card Associations , 2002 .

[32]  Ettore Damiano,et al.  Price Discrimination in Matching Markets , 2002 .

[33]  J. Tirole,et al.  Some Simple Economics of Open Source , 2002 .

[34]  William R. Emmons,et al.  Who Pays for Credit Cards , 2003 .

[35]  Julian Wright,et al.  Optimal Card Payment Systems , 2002 .

[36]  Richard Poynder,et al.  The Open Source Movement , 2001 .

[37]  Julian Wright,et al.  The Determinants of Optimal Interchange Fees in Payment Systems , 2001 .

[38]  Stephen P. King,et al.  The Neutrality of Interchange Fees in Payment Systems , 2001 .

[39]  J. Tirole,et al.  The Open Source Movement: Key Research Questions , 2001 .

[40]  Richard Schmalensee,et al.  Payment Systems and Interchange Fees , 2001 .

[41]  Julian Wright,et al.  Peering and Settlement in the Internet: An Economic Analysis , 2000 .

[42]  J. Laffont,et al.  Competition in telecommunications , 1999 .

[43]  Joseph Farrell,et al.  Standardization, Compatibility, and Innovation , 1985 .

[44]  C. Shapiro,et al.  Network Externalities, Competition, and Compatibility , 1985 .

[45]  P. David.  Clio and the Economics of QWERTY , 1985 .

[46]  William F. Baxter,et al.  Bank Interchange of Transactional Paper: Legal and Economic Perspectives , 1983, The Journal of Law and Economics.