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A Strategic Guide on Two-Sided Markets Applied to the ISP Market

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  • Cortade, Thomas

Abstract

This paper looks at a new body of literature that deals with two-sided markets and focuses on the Internet Service Provider (ISP) segment. ISPs seem to act as a platform enabling transactions between web sites and end consumers. We propose a strategic guide for ISPs that covers features of two-sided markets such as strong externalities and discuss how these market characteristics can affect competition policy.

Suggested Citation

  • Cortade, Thomas, 2006. "A Strategic Guide on Two-Sided Markets Applied to the ISP Market," MPRA Paper 2602, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2602
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    File URL: https://mpra.ub.uni-muenchen.de/2602/1/MPRA_paper_2602.pdf
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    References listed on IDEAS

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    1. Caillaud, Bernard & Jullien, Bruno, 2003. "Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-328, Summer.
    2. GABSZEWICZ, Jean & LAUSSEL, Didier & SONNAC, Nathalie, 2002. "Network effects in the press and advertising industries," LIDAM Discussion Papers CORE 2002062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
    4. Laffont, Jean-Jacques & Marcus, Scott & Rey, Patrick & Tirole, Jean, 2003. "Internet Interconnection and the Off-Net-Cost Pricing Principle," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 370-390, Summer.
    5. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    6. Jorge A, Ferrando & Jean J, Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Two-Sided Network Effects and Competition : An Application to Media Industries," Working Papers 2004-09, Center for Research in Economics and Statistics.
    7. Jullien, Bruno, 2001. "Competing with Network Externalities and Price Discrimination," CEPR Discussion Papers 2883, C.E.P.R. Discussion Papers.
    8. Jean-Jacques Laffont & Jean Tirole, 2001. "Competition in Telecommunications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262621509, April.
    9. Wright Julian, 2004. "One-sided Logic in Two-sided Markets," Review of Network Economics, De Gruyter, vol. 3(1), pages 1-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. van der Graaf, Shenja & Ballon, Pieter, 2019. "Navigating platform urbanism," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 364-372.
    2. Nikkhah, Ali & Jordan, Scott, 2022. "A two-sided model of paid peering," Telecommunications Policy, Elsevier, vol. 46(8).
    3. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).
    4. Pieter Ballon & Nils Walravens & Antonietta Spedalieri & Claudio Venezia, 2010. "The Reconfiguration of Mobile Service Provision: Towards Platform Business Models," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 12, Edward Elgar Publishing.
    5. Buchinger, Uschi & Spek, Sander & Ranaivoson, Heritiana & Lindmark, Sven, 2014. "Towards a typology for B2B application platforms," 25th European Regional ITS Conference, Brussels 2014 101382, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Platform; externalities; price allocation; competition policy;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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