First, he argued that credit card companies are atypical because they participate in "two-sided markets
," interacting with retailers and consumers.
(2.) See Jean-Charles Rochet & Jean Tirole, Two-Sided Markets
: A Progress Report, 37 RAND J.
Although Tirole believes in antitrust laws to limit monopoly power, he points out that regulators must be cautious in bringing the law to bear against firms in "two-sided markets
." An example of a two-sided market
is a manufacturer of videogame consoles.
It is our claim that large commercial "sharing" platforms are just two-sided markets
like most other platforms that are not considered part of the sharing economy and function along the same principles described in the economic literature on two-sided and multi-sided markets10.
The keynote address by Randy Heffner (VP & Principal Analyst - Forrester Research) will detail the ways in which enterprises world-over are adopting this model to connect participants in two-sided markets
, generating value for both groups.
Researchers have defined two-sided markets
as markets in which firms offer a product to two distinct consumer groups whose utility functions intersect (Rochet and Tirole, Journal of the European Economic Association, 2003).
Different strands of economic research have been brought to bear on these platforms, including the pioneering work of Jean Tirole and others on two-sided markets
, an older literature on networks, and recent work on market design.
(67) In two-sided markets
in which one side is free, however, a traditional market share calculation is inadequate because one side of the market may serve to subsidize the other.
We then use the dichotomy between average and high quality, artistic film consumers as a basis for understanding the normative views of the film markets relative to other two-sided markets
as well as the political economy of film regulation.
This paper is mainly related to two recent industrial organisation literature themes: (1) the profitability and efficiency properties of the duality of prices and quantities in differentiated duopoly, early analysed by Singh and Vives , and (2) the economics of networks and two-sided markets
"Strategies for Two-Sided Markets
" (2006) 84:10 Harvard Business Review.