Two-Sided Market with Spillover - Modeling a City

Oleg Shchetinin

MPRA Paper from University Library of Munich, Germany

Abstract: The paper explores the analogy between city and two-sided market. It generalizes the results on the pricing strategies of the platform in the two-sided markets for the case when concentration spillover plays an important role. The two-sided market framework is applied to model a city. The paper highlights the importance of the network effect and labor market structure for city size, governance and agglomeration formation. The cases of an isolated city and competing cities are considered.

Keywords: Two-sided markets; Industrial organization; Urban economics; Concentration spillover; City; Labor matching market (search for similar items in EconPapers)
JEL-codes: D4 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-geo, nep-mic, nep-mkt, nep-net and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15428

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