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Identifying Two-Sided Markets

Lapo Filistrucchi

Tilburg University, TILEC; University of Florence, Dipartimento di Scienze Economiche

Damien Geradin

George Mason University School of Law; Tilburg Law & Economics Center (TILEC)

Eric van Damme

TILEC and CentER, Tilburg University

February 21, 2012

TILEC Discussion Paper No. 2012-008

We review the burgeoning literature on two-sided markets focusing on the different definitions that have been proposed. In particular, we show that the well-known definition given by Evans is a particular case of the more general definition proposed by Rochet and Tirole. We then identify the crucial elements that make a market two-sided and, drawing from both theory and practice, derive suggestions for the identification of the two-sided nature of a market. Our suggestions are relevant not only for the analysis of traditional two-sided markets, such as newspapers and payment cards, but also for the analysis of many new markets, such as those for online social networks, online search engines and Internet news aggregators.

Number of Pages in PDF File: 26

Keywords: two-sided markets, platforms, network effects

JEL Classification: L40, L50, K21

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Date posted: February 21, 2012  

Suggested Citation

Filistrucchi, Lapo and Geradin, Damien and van Damme, Eric, Identifying Two-Sided Markets (February 21, 2012). TILEC Discussion Paper No. 2012-008. Available at SSRN: http://ssrn.com/abstract=2008661 or http://dx.doi.org/10.2139/ssrn.2008661

Contact Information

Lapo Filistrucchi (Contact Author)
Tilburg University, TILEC ( email )
P.O. Box 90153
Tilburg, Noord-Brabant NL-5000 LE
+31 13 466 3360 (Phone)
+31 13 466 3042 (Fax)
HOME PAGE: http://www.lapofilistrucchi.com
University of Florence, Dipartimento di Scienze Economiche ( email )
via delle Pandette 9
Florence, Florence IT-50127
+39 055 2759579 (Phone)
+39 055 2759910 (Fax)
HOME PAGE: http://www.lapofilistrucchi.com
Damien Geradin
George Mason University School of Law ( email )
3301 Fairfax Drive
Arlington, VA 22201
United States

George Mason Law School Logo

Tilburg Law & Economics Center (TILEC)
Tilburg, 5000 LE
Eric E.C. Van Damme
TILEC and CentER, Tilburg University ( email )
P.O. Box 90153
Tilburg, 5000 LE
+31 13 466 3045 (Phone)
+31 13 466 3066 (Fax)
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