The Effects of Conventional Policies on Price Structure and Consumer Surplus in a Two-sided Market–an Economics Experiment

Daniel M. Nedelescu ()
Additional contact information
Daniel M. Nedelescu: University of Oklahoma

Networks and Spatial Economics, 2025, vol. 25, issue 1, No 7, 173-198

Abstract: Abstract This study investigates the effects of different conventional policies on price structure and consumer surplus in a two-sided market monopoly. Consistent with theory, in a laboratory environment, the majority of subjects charge a price below cost, even if there is no threat of entry by new competitors. However, the prices do not reach the predicted prices. When three different policies are imposed in this market, the prices change according to the theory. Results regarding changes in consumer surplus are reported as well. These results suggest that policymakers should distinguish between one-sided and two-sided markets in determining optimal policies.

Keywords: Two-sided Market; Experiment; Policies (search for similar items in EconPapers)
JEL-codes: C9 D40 L51 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11067-024-09659-7 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:netspa:v:25:y:2025:i:1:d:10.1007_s11067-024-09659-7

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11067/PS2

DOI: 10.1007/s11067-024-09659-7

Access Statistics for this article

Networks and Spatial Economics is currently edited by Terry L. Friesz

More articles in Networks and Spatial Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().