Note on 'Competition in Two-Sided Markets'

We extend the models in ("Competition in Two-sided Markets" of Armstrong (2006, 'Rand Journal of Economics') by adding within-group externalities. In the monopoly and duopoly cases, positive within-group externalities reduce the price of the own group. Negative externalities have an opposite price effect. In the case of a competitive bottleneck, we show by examples that within a certain range of parameter values, a novel phenomenon arises that the platform attracts more agents from one of the groups compared with the social optimum

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Year of publication:	2015
Authors:	Zeng, Yuyu
Other Persons:	Houba, Harold (contributor) ; Laan, Gerard van der (contributor)
Publisher:	[2015]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Netzwerkökonomik \| Network economics \| Wettbewerb \| Competition \| Marktstruktur \| Market structure

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