Armstrong meets Rochet–Tirole: On the equivalence of different pricing structures in two-sided markets

Raúl Bajo-Buenestado and Markus Kinateder

Economics Letters, 2019, vol. 177, issue C, 43-46

Abstract: We formally show that lump-sum participation fees and per-interaction fees charged by a monopoly platform in a two-sided market are not interchangeable in the presence of price distortions, such as ad valorem taxes.

Keywords: Two-sided market; Platform pricing; Pricing structure; Taxation; Price distortions (search for similar items in EconPapers)
JEL-codes: D4 H20 L11 L12 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:177:y:2019:i:c:p:43-46

DOI: 10.1016/j.econlet.2019.01.022

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