Motivated by the emergence of popular service-based two-sided markets where sellers can serve multiple buyers at same time, we formulate and study cost sharing problem. In sharing, incur different costs for serving subsets have values being served sellers. Both are self-interested agents whose private information. We problem from perspective an intermediary platform that matches to assigns pric...

I study two-sided markets where the platform is composed of components supplied by di¤erent producers. I examine a producer’s incentive to provide compatibility of its product with other suppliers’. Two models are considered. In the …rst model, I …nd that tying of a complementary product may be pro…table. In the second model, I …nd that a durable goods monopolist’s introduction of incompatibili...

The paper offers an introduction and a road map to the burgeoning literature on two-sided markets. In many industries, platforms court two (or more) sides that use the platform to interact with each other. The platforms’ usage or variable charges impact the two sides’ willingness to trade, and thereby their net surpluses from potential interactions; the platforms’ membership or fixed charges in...