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Two-Sided Market with Spillover - Modeling a City

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  • Shchetinin, Oleg

Abstract

The paper explores the analogy between city and two-sided market. It generalizes the results on the pricing strategies of the platform in the two-sided markets for the case when concentration spillover plays an important role. The two-sided market framework is applied to model a city. The paper highlights the importance of the network effect and labor market structure for city size, governance and agglomeration formation. The cases of an isolated city and competing cities are considered.

Suggested Citation

  • Shchetinin, Oleg, 2009. "Two-Sided Market with Spillover - Modeling a City," MPRA Paper 15428, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15428
    as

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    References listed on IDEAS

    as
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    13. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627, Elsevier.
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    More about this item

    Keywords

    Two-sided markets; Industrial organization; Urban economics; Concentration spillover; City; Labor matching market;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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