Two-Sided Markets and Electronic Intermediaries [chapter]

2006 Industrial Organization and the Digital Economy  
The object of this paper is to discuss on-line intermediation from the perspective of two-sided markets. It builds a simple model of the intermediation activity when trading partners are involved in a commercial relationship and uses it to illustrate some of the results that emerge in the two-sided market literature, as well as to discuss some new aspects. The first part concentrates on a monopoly intermediation service and discusses both efficient pricing and monopoly pricing. The second part
more » ... iscusses the nature of competition between intermediaries, addressing issues as competitive crosssubsidies, multi-homing or tying.
doi:10.7551/mitpress/3740.003.0010 fatcat:b2zi3q3ppvai7lslaf7botik3u