Management Science and Engineering
Two-Sided Market Pricing in Operations Management: Review of Current Literature and Research Directions
Abstract
With the rapid evolution of Internet technologies and the popularization of smart technologies, various two-sided markets have sprung up in different fields. Due to its special network externalities and the huge impact on traditional markets, two-sided markets have aroused great concern of academics to the two-sided market theory. In recent years, many scholars in the field of operations management also turn their attention to two-sided platforms. The research on operations management strategies for two-sided platforms needs to incorporate multidisciplinary theories rather than relying solely on research in a single discipline such as economics. As one of the main strategies of operations management, pricing in two-sided market becomes a mainstream research issue. Based on the development of two-sided market theory, this article reviews the studies on two-sided market in operations management in recent years, from the perspective of whether the two sides enter the market simultaneously.
Keywords
Full Text:
PDFReferences
Armstrong, M. (2006). Competition in two-sided markets. Rand Journal of Economics, 37, 668-691.
Armstrong, M., & Wright, J. (2004). Two-sided markets, competitive bottlenecks and exclusive contracts. Economic Theory, 32, 353-380.
Bae, S. H., & Kwon, J. (2008). Two-sided network effects and competitive balance in professional team sports. Social Science Electronic Publishing.
Bedre-Defolie, O., & Calvano, E., (2013). Pricing payment cards. Am. Econ. J.-Microecon, 5, 206-231.
Caillaud, B., & Jullien, B. (2003). Chicken & Egg: Competition among intermediation service providers. The RAND Journal of Economics, 34, 309-328.
Chakravorti, S., & Roson, R. (2006). Platform competition in two-sided markets: The case of payment networks. Review of Network Economics, 5, 118-143.
Ehrlich, M. V., & Greiner, T. (2013). The role of online platforms for media markets—Two-dimensional spatial competition in a two-sided market. International Journal of Industrial Organization, 31, 723-737.
Gans, J. S. (2011). Mobile application pricing. Information Economics & Policy, 24, 52-59.
Hagiu, A. (2004). Two-sided platforms: Pricing and social efficiency. Available at SSRN 621461.
Hagiu, A. (2006a). Pricing and commitment by two-sided platforms. RAND Journal of Economics (RAND Journal of Economics), 37, 720-737.
Hagiu, A. (2006b). Proprietary vs. open two-sided platforms and social efficiency. Ssrn Electronic Journal, (245).
Hagiu, A. (2007). Merchant or two-sided platform? Review of Network Economics, 6, 115-133.
Hagiu, A. (2009). Two-sided platforms: Product variety and pricing structures. J. Econ. Manage. Strategy, 18, 1011-1043.
Hagiu, A. (2014). Quantity vs. Quality: Exclusion by platforms with network effects. Harvard Business School Working Paper.
Hagiu, A., & Eisenmann, T. (2007). A staged solution to the catch-22. Harvard Business Review, 85, 25.
Hagiu, A., & Halaburda, H. (2014). Information and two-sided platform profits. International Journal of Industrial Organization, 34, 25-35.
Hagiu, A., & Jullien, B. (2011). Why do intermediaries divert search? Rand Journal of Economics, 42, 337-362.
Hagiu, A., & Jullien, B. (2014). Search diversion and platform competition. International Journal of Industrial Organization, 33, 48-60.
Hagiu, A., & Lee, R.S. (2011). Exclusivity and control. J. Econ. Manage. Strategy, 20, 679-708.
Hagiu, A., & Spulber, D. (2013). First-party content and coordination in two-sided markets. Management Science, 59, 933-949.
Hagiu, A., Wright, J. (2015). Marketplace or reseller? Management Science, 61, 184-203.
Hotelling, H. (1990). Stability in competition. The Economic Journal, 39, 50-63.
Kim, S. M. (2016). How can we make a socially optimal large-scale media platform? Analysis of a monopolistic Internet media platform using two-sided market theory. Telecommun Policy, 40, 899-918.
Kind, H. J., Nilssen, T., & Sorgard, L. (2016). Inter-firm price coordination in a two-sided market. International Journal of Industrial Organization, 44, 101-112.
Li, S., Liu, Y., & Bandyopadhyay, S. (2010). Network effects in online two-sided market platforms: A research note. Decision Support Systems, 49, 245-249.
Reisinger, M. (2014). Two-part tariff competition between two-sided platforms. European Economic Review, 68, 168-180.
Rochet, J., & Tirole, J. (2003). Platform competition in two-sided markets. Journal of the European Economic Association, 1, 990-1029.
Rochet, J. C., & Tirole, J. (2004). Two-sided markets: An overview. Toulouse, 51(11), 233-260.
Rochet, J. C., & Tirole, J. (2006). Two-sided markets: A progress report. RAND Journal of Economics (RAND Journal of Economics), 37, 645-667.
Rysman, M. (2009). The economics of two-sided markets. Journal of Economic Perspectives, 23, 125-143.
Wang, X., He, F., Yang, H., & Gao, H. (2016). Pricing strategies for a taxi-hailing platform. Transportation Research Part E: Logistics and Transportation Review, 93, 212-231.
Wang, Z. (2016). Price cap regulation in a two-sided market: Intended and unintended consequences. International Journal of Industrial Organization, 45, 28-37.
Yoo, B., Choudhary, V., & Mukhopadhyay, T. (2002). A model of neutral B2B. Journal of Management Information Systems, 19, 43-68.
Yu, Z., Li, S., & Tong, L. (2015). Market dynamics and indirect network effects in electric vehicle diffusion. Transportation Research Part D Transport & Environment, 47, 336-356.
DOI: http://dx.doi.org/10.3968/10126
Refbacks
- There are currently no refbacks.
Copyright (c) 2018 Management Science and Engineering
This work is licensed under a Creative Commons Attribution 4.0 International License.
Share us to: 
Reminder
- How to do online submission to another Journal?
- If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:
1. Register yourself in Journal B as an Author
- Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.
2. Submission
- Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
[email protected]; [email protected]; [email protected]
Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).
MANAGEMENT SCIENCE AND ENGINEERING Editorial Office
Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org
Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures 
