Two-sided markets, pricing, and network effects

The chapter has ten sections, which cover the theory of two-sided markets and related empirical work. Section 1 introduces reader to literature. 2 covers case dominated by a single monopolistic firm. 3 discusses theoretical literature on competition for market, focusing pricing strategies that firms may follow prevent entry. 4 in multiple platforms are active serve both sides. 5 presents alternative models platform competition. 6 richer matching protocols whereby price-discriminate granting access only subset participating agents from other side design. 7 identification 8 approaches estimation. 9 estimation Finally, 10 concludes.