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

Bajo-Buenestado, R. (Raúl); Kinateder, M. (Markus)

Authors:

Bajo-Buenestado, R. (Raúl)

Kinateder, M. (Markus)

Keywords:

Two-sided market
Platform pricing
Taxation
Pricing structure
Price distortions

Issue Date:

2019

Publisher:

Elsevier

ISSN:

0165-1765

Note:

CC BY-NC-ND

Citation:

Bajo-Buenestado, R. (Raúl); Kinateder, M. (Markus). "Armstrong meets Rochet-Tirole: on the equivalence of different pricing structures in two-sided markets". Economics Letters. 177, 2019, 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.

URI:

https://hdl.handle.net/10171/68712

DOI:

10.1016/j.econlet.2019.01.022

Appears in Collections:

DA - Economía - Artículo de revista

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