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| Ralf Dewenter and Juergen Roesch |
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| ''Market entry into emerging two-sided markets'' |
| ( 2012, Vol. 32 No.3 ) |
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| This note analyzes the impact of indirect network effects in
emerging two-sided markets on prices, quantities, profits and
market entry assuming market enlargement induced by indirect
network effects. Only if indirect network effects are small,
the conventional results of market entry apply, although weakened.
If, however, the interconnection between the markets is strong,
tighter market structures or even monopolies can be optimal. |
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| Keywords: Market entry, two-sided markets, emerging markets. |
JEL:
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Aug 02 2012 | | Manuscript Accepted : Aug 23 2012 |
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