Analysis of the Agents’ Features Influence on the Optimal Pricing in Bilateral Market

The article presents an analysis of foreign studies on bilateral markets and review of works dedicated to research of the optimal pricing principles and assessment of the influence of the agents’ features on the intermediary firm behaviour. The core article, “Platforms Competition in the Bilateral Market”, written by Jean-Charles Roche and Jean Tirol, was published in 2003. Basic models were dedicated to analyzing the influence of the demand elasticity and the magnitude of the network external effect on the optimal pricing of an intermediary firm. In process of enriching scientific understanding of the fundamentals of bilateral markets functioning, attention was focused on analyzing the influence exerted by various types of agents’ expectations or by the presence of loyal agents in the group. In addition, in the course of work, it was concluded that the main decision, in terms of the pricing structure, that the intermediary company needs to take, is the division of agents into a subsidized group and an exploited group


1. Rochet J.-Ch., Tirole J. Platform Competition in Two-sided Markets. Journal of the European Economic Association, 2003, no 1, pp. 990–1029.

2. Armstrong M. Competition in Two-sided Markets. RAND Journal of Economics, 2006, no 37(3), pp. 668–691.

3. Hagiu А. Two-sided Platforms: Product Variety and Pricing Structures. Journal of Economics and Management Strategy, 2009, no 18(4), pp. 1011–1043.

4. Gabszewicz J., Wauthy X. Two-sided Markets and Price Competition with Multi-homing. CORE Discussion Paper, Louvain-la-Neuve, Belgium, 2004, no 30.

5. Economides N., Tag J. Network Neutrality on the Internet: A Two-sided Market Analysis. Information Economics and Policy, 2012, no 24, pp. 91–104.

6. Hagiu A. Optimal Pricing and Commitment in Two-Sided Markets. RAND Journal of Economics, 2006, no 37(3), pp. 720–737.

7. Gabszewicz J., Wauthy X. Platform Competition and Vertical Differentiation, 2012, CORE Discussion Paper, Louvain-la-Neuve, Belgium.

8. Economides N., Himmelberg Ch. Critical Mass and Network Size with Application to the US FAX Market. Stern School of Business, 1995, no 11.

9. Aloui Ch., Jebsi K. Optimal Pricing of a Two-Sided Monopoly Platform with One-Sided Congestion Effect. International Review of Economics, 2010, no 57(4), pp. 423–439.

10. Hagiu A. Merchant or Two-Sided Platform? Review of Network Economics, 2007, no 6(2), pp. 115–133.

11. Hagiu A., Spulber D. First-Party Content and Coordination in Two-Sided Markets. Management Science, 2013, no 59(4), pp. 933–949.

Следить за новостями ИНЭС: