Platforms and network effects


Belleflamme, Paul ; Peitz, Martin


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URL: https://ub-madoc.bib.uni-mannheim.de/41306
URN: urn:nbn:de:bsz:180-madoc-413065
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: Working Paper Series
Volume: 16-14
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > Industrieökonomik, Wettbewerbspolitik u. Regulierung (Peitz 2007-)
MADOC publication series: Department of Economics > Working Paper Series
Subject: 330 Economics
Classification: JEL: D43 , L13 , L86,
Keywords (English): Network effects , digital platforms , two-sided markets , tipping , platform competition , intermediation , pricing , imperfect competition
Abstract: In many markets, user benefits depend on participation and usage decisions of other users giving rise to network effects. Intermediaries manage these network effects and thus act as platforms that bring users together. This paper reviews key findings from the literature on network effects and two-sided platforms. It lays out the basic models of monopoly platforms and platform competition, and elaborates on some routes taken by recent research.




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