Bolt, Wilko; Tieman, Alexander F. - In: Review of Network Economics 5 (2006) 1, pp. 103-117
Using a simple model of two-sided markets, we show that, in the social optimum, platform pricing leads to an inherent cost recovery problem. This result is driven by the positive externality of participation that users on either side of the market exert on the opposite side. The contribution of...
