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Competition in Two-sided Platform Markets with Direct Network Effect
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Hyun, Jungsik | - |
dc.date.accessioned | 2016-08-31T05:40:31Z | - |
dc.date.available | 2016-08-31T05:40:31Z | - |
dc.date.issued | 2016-08-07 | - |
dc.identifier.citation | Seoul Journal of Economics, Vol.29 No.3, pp. 331-377 | - |
dc.identifier.issn | 1225-0279 | - |
dc.identifier.uri | https://hdl.handle.net/10371/97046 | - |
dc.description.abstract | In light of recent trends in social networking services that encourage users of platforms to share, recommend, and do activities with others, this work analyzes platform competition in two-sided markets that exhibit direct (or within-) network effect in addition to conventional cross-network effect. Introduction of direct network effect to one group (buyer-side) in a two-sided market generates two counteracting effects: demand-augmenting effect and demand-sensitizing effect.
The former allows platforms to raise buyer-side price, thereby increasing the sum of prices charged to buyers and sellers, whereas the latter causes platforms to lower them. I show that demand-augmenting effect dominates demand-sensitizing effect under the monopoly platform, whereas introducing competition between platforms under sufficient direct network effect relatively strengthens the demandsensitizing effect, which lowers the price charged to buyers. | - |
dc.language.iso | en | - |
dc.publisher | Institute of Economic Research, Seoul National University | - |
dc.subject | Two-sided markets | - |
dc.subject | Platform competition | - |
dc.subject | Social networking services | - |
dc.subject | Network effects | - |
dc.title | Competition in Two-sided Platform Markets with Direct Network Effect | - |
dc.type | SNU Journal | - |
dc.contributor.AlternativeAuthor | 현정식 | - |
dc.citation.journaltitle | Seoul Journal of Economics | - |
dc.citation.endpage | 377 | - |
dc.citation.number | 3 | - |
dc.citation.pages | 331-377 | - |
dc.citation.startpage | 331 | - |
dc.citation.volume | 29 | - |
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