Whether a two-sided platform faces a critical-mass problem in its start-up phase depends on how difficult it is to get each of the sides on board when the other side is not yet there – the so-called chicken-and-egg problem. If there is no chicken-and-egg problem, there is no critical-mass...

In his article “Two-Sided Vs. Complementary Products” Filistrucchi explains in what respect two-sided platforms are different from firms producing complementary products, in spite of the similarity in pricing strategies. For him, the distinguishing feature of two-sided platforms is the...

We propose a general framework for consumer demand in two-sided markets, modelling the way externalities between customer groups affect the price sensitivity of demand on both sides of the market. We define a measure for the strength of the externalities and establish the conditions for the...