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

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