Another Tale of Two-Sided Markets

Type/nr A14/07
Skrevet av Hans Jarle Kind and Frank Stähler
This note generalizes the frequently used Hotelling model for two-sided markets. We demonstrate an invariance theorem: advertisement levels neither depend on the media price nor on the location of the media firm. An increase in advertising revenues does not change location but only the media price. In conclusion a Hotelling model of two-sided markets is equivalent to one of one-sided markets.
Språk Skrevet på engelsk