This note analyzes the impact of indirect network effects in emerging two-sided markets on prices, quantities, profits and market entry assuming market enlargement induced by indirect network effects. Only if indirect network effects are small, the conventional results of market entry apply,...

This note analyzes the impact of habit formation in media markets on the behavior of a two-sided newspaper platform. Using a simple dynamic approach we find that habit formation (as well as indirect network effects) lead to higher quantities and profits. Price setting, however, strongly depends...