In a remarkably one-sided market
for the Qatar Prix de l'Arc de Triomphe on October 1, quadruple Group 1 winner Enable - dominant again in last week's Yorkshire Oaks - is odds-on with some firms, while every other horse in ante-post lists can be backed at double-figure odds.
Clauses introduced in the distribution contract between a supplier and a supermarket may thus turn a two-sided market in a one-sided market
under Rochet and Tirole's definition.
Whether a service provider wants to act as an intermediary, thus operating a two-sided market model (e.g., Ebay, Google Search, Facebook, Youtube as well as almost all other advertisement-supported free services) or as its own service provider, thus operating a one-sided market
model (e.g., Netflix, WhatsApp) is usually a deliberate choice of the respective firm.
Its form has been promoted by the prevailing ideology, which he identifies as "one-sided market
Don't be fooled by the one-sided market
- this is a close one to call, and one goal could be enough to settle it.
Regardless of whether one defines a single, multisided market or a set of closely linked one-sided markets
, courts should continue to apply separate-effects analysis.
Subsequent analysis has introduced market imperfections into the analysis of two-sided payment markets that has generated some interesting contrasts with imperfections in typical one-sided markets
. In one-sided markets
, a monopoly harms consumers by restricting output and raising price.
Because many industrial products are custom-made to buyers' specifications, they exhibit the characteristic of being single-buyer, one-sided markets
. Because of the strict requirements for counterparty indifference and product standardization, neutral exchanges have been less prevalent.
The early literature was mostly focused on price theory, explaining difference between pricing in multi-sided markets and one-sided markets
by emphasizing the need to coordinate users and bring all sides on board.
The economics literature on platforms and two-sided markets shows that applying insights from the analysis of one-sided markets
to two-sided markets might be misleading.