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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 L11 L12 H20 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:eee:ecolet:v:177:y:2019:i:c:p:43-46