Platforms and network effects

Paul Belleflamme and Martin Peitz

No 16-14, Working Papers from University of Mannheim, Department of Economics

Abstract: In many markets, user benefits depend on participation and usage decisions of other users giving rise to network effects. Intermediaries manage these network effects and thus act as platforms that bring users together. This paper reviews key findings from the literature on network effects and two-sided platforms. It lays out the basic models of monopoly platforms and platform competition, and elaborates on some routes taken by recent research.

Keywords: Network effects; digital platforms; two-sided markets; tipping; platform competition; intermediation; pricing; imperfect competition (search for similar items in EconPapers)
JEL-codes: D43 L13 L86 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-com, nep-mic, nep-mkt, nep-net, nep-pay and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://madoc.bib.uni-mannheim.de/41306/1/16-14_Belleflamme%20Peitz.pdf

Related works:
Chapter: Platforms and network effects (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mnh:wpaper:41306

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