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Managing Competition on a Two-Sided Platform

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  • Paul Belleflamme
  • Martin Peitz

Abstract

On many two-sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition affects platform pricing, product variety, and the number of platforms that carry trade.

Suggested Citation

  • Paul Belleflamme & Martin Peitz, 2018. "Managing Competition on a Two-Sided Platform," CRC TR 224 Discussion Paper Series crctr224_2018_028, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2018_028
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    References listed on IDEAS

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    More about this item

    Keywords

    Network effects; two-sided markets; platform competition; intermediation; pricing; imperfect competition;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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