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This paper develops a simple model of monopoly platform pricing accounting for two pertinent features of matching markets. 1) The trading process is characterized by search and matching frictions implying limits to positive cross-side network effects and the presence of own-side congestion.2)...
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Many markets are one-to-one matching markets in which match-making intermediaries enable pairs of buyers and sellers to negotiate a transaction price for a good or service. Examples are real estate markets in which realtors search for matches between potential home buyers and sellers, or labor...
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