Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1026627 | The Journal of High Technology Management Research | 2011 | 8 Pages |
Abstract
We define electronic platforms as two-sided markets in which two groups of agents – sellers and buyers – can switch from one side of the market to the other. Using a duopoly model, we interpret equilibrium fees and profits in terms of rewards and penalties, relative to the equilibrium without side-switching. We establish that if the group with the highest side-switching probability has the lowest externality parameter, platforms make more profit with side-switching. It is also shown that agents' heterogeneity is favorable to platform profitability.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Management of Technology and Innovation
Authors
Pierre Gazé, Anne-Gaël Vaubourg,