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1、mss#RochetandTirole;art.#09;RANDJournalofEconomicsvol.37(3)RANDJournalofEconomicsVol.37,No.3,Autumn2006pp.645–667Two-sidedmarkets:aprogressreportJean-CharlesRochet∗andJeanTirole∗∗Weprovidearoadmaptotheburgeoningliteratureontwo-sidedmarketsandpresentnew
2、results.Weidentifytwo-sidedmarketswithmarketsinwhichthestructure,andnotonlythelevelofpriceschargedbyplatforms,matters.ThefailureoftheCoasetheoremisnecessarybutnotsufficientfortwo-sidedness.Webuildamodelintegratingusageandmembershipexternalitiesthatunifie
3、stwohithertodisparatestrandsoftheliteratureemphasizingeitherformofexternality,andobtainnewresultsonthemixofmembershipandusagechargeswhenpricesettingorbargainingdeterminepaymentsbetweenend-users.1.Introduction1Two-sided(or,moregenerally,multi-sided)mar
4、ketsareroughlydefinedasmarketsinwhichoneorseveralplatformsenableinteractionsbetweenend-usersandtrytogetthetwo(ormultiple)sides“onboard”byappropriatelychargingeachside.Thatis,platformscourteachsidewhileattemptingtomake,oratleastnotlose,moneyoverall.Examp
5、lesoftwo-sidedmarketsreadilycometomind.Videogameplatforms,suchasAtari,Nintendo,Sega,SonyPlayStation,andMicrosoftX-Box,needtoattractgamersinordertopersuadegamedeveloperstodesignorportgamestotheirplatform,andtheyneedgamestoinducegamerstobuyandusetheirvid
6、eogameconsole.Softwareproducerscourtbothusersandapplicationdevelopers,clientandserversides,orreadersandwriters.Portals,TVnetworks,andnewspaperscompeteforadvertisersaswellas“eyeballs.”Andpaymentcardsystemsneedtoattractbothmerchantsandcardholders.Therear
7、emanyothertwo-sidedmarketsofinterest,2onlyafewofwhichwillbementionedinthisarticle.Butwhatisatwo-sidedmarket,andwhydoestwo-sidednessmatter?Ontheformerquestion,therecentliteraturehasbeenmostlyindustryspecificandhashadmuchofa“Youknowatwo-sided∗Universityof
8、Toulouse;rochet@cict.fr.∗∗UniversityofToulouse,andMIT;tirole@cict.fr.Thepreviousversionofthisarticlewasentitled“Two-SidedMarkets:AnOverview.”WethankMarkArmstrong,JacquesCr´emer,ChaimFershtman,AndreiHagiu,JenniferReinganum,andtheparticip