Platform Pricing in Matching Markets
Abstract
Existing models of two-sided markets explain why platforms charge different prices between buyers and sellers. Generally, the platform will subsidize participation on a side of the market the higher is that side’s positive cross-side externality to users on the other side of the market. However, in matching markets there also exists a negative own-side congestion externality that the platform internalizes by taxing users for its presence....
Paper Details
Title
Platform Pricing in Matching Markets
Published Date
Jan 22, 2014
Journal
Volume
12
Issue
4
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