Two-Sided Market with Spillover: Modeling a City

Shchetinin, Oleg

doi:10.2139/ssrn.1393753

Abstract

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Two-Sided Market with Spillover: Modeling a City

Oleg Shchetinin

Gothenburg University - Department. of Economics, School of Business, Economics and Law

May 1, 2009

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.

Number of Pages in PDF File: 31

Keywords: Two-sided markets, Industrial organization, Urban economics, Concentration spillover, City, Matching

JEL Classification: D42, D43, H71, L12, L13, R12, R30

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Date posted: May 20, 2009 ; Last revised: May 29, 2009

Suggested Citation

Shchetinin, Oleg, Two-Sided Market with Spillover: Modeling a City (May 1, 2009). Available at SSRN: http://ssrn.com/abstract=1393753 or http://dx.doi.org/10.2139/ssrn.1393753

Contact Information

Oleg Shchetinin (Contact Author)

Gothenburg University - Department. of Economics, School of Business, Economics and Law ( email )

Box 640
Göteborg, 40530
Sweden