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...

Many markets are one-to-one matching markets in which match-making intermediaries enable pairs of buyers and sellers to negotiate a transaction price for a good or service. Examples are real estate markets in which realtors search for matches between potential home buyers and sellers, or labor...

This paper develops a simple model of monopoly platform pricing accounting for two pertinent features of matching markets. 1) The trading process is characterized by search and matching frictions implying limits to positive cross-side network effects and the presence of own-side congestion....