Two-Sided Markets

2023/2024

Academic Year

ENG

Instruction in English

4

ECTS credits

Delivered at:

Department of Economics

Course type:

Compulsory course

When:

4 year, 2 module

Instructor

Торпищев Тимур Ринатович

Course Syllabus

Abstract

The course introduces the basic framework for the formal analysis of platform operators in the context of two-sided markets with a focus on online markets. Tutorials will be devoted to problem-solving and discussions on actual economic topics relevant to the course content.

Learning Objectives

• First, basic theory of platform competition and switching costs, network externalities, and pricing in two-sides markets is introduced
• First, basic theory of platform competition and switching costs, network externalities, and pricing in two-sides markets is introduced.
• Second, an applications to the antitrust and regulatory issues are considered.
• Third, issues related to the specific online multi-sided industries are covered.

Expected Learning Outcomes

• Familiarize students with the concepts of platform competition and switching costs, network externalities, and pricing in two-sides markets
• Familiarize students with the economics of specific multi-sided industries (online search engines, online advertising).
• Provide students with analytical approaches to analyzing competition policy on the two-sided markets.

Course Contents

• Basic analytical concepts for markets with online platform
• Internet platform market structures: platforms, dealers, matchmakers
• Pricing and competition at two-sided platform markets
• Antitrust regulation of two-sided platform markets
• Search engines, online media, and advertising
• Asymmetric information and information design at internet platform markets

Assessment Elements

• In-class test
• Homework assignment
• Written exam
• Summary

Interim Assessment

• 2023/2024 2nd module
  0.1 * Homework assignment + 0.3 * In-class test + 0.1 * Summary + 0.5 * Written exam

Bibliography

Recommended Core Bibliography

• 9780262200714 - Tirole, Jean - The Theory of Industrial Organization - 1988 - MIT Press - https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=11386 - nlebk - 11386

Recommended Additional Bibliography

• Armstrong, M. (2006). Competition in two-sided markets. RAND Journal of Economics (Wiley-Blackwell), 37(3), 668–691. https://doi.org/10.1111/j.1756-2171.2006.tb00037.x
• Rochet, J.-C., & Tirole, J. (2003). Platform Competition in Two-Sided Markets. Journal of the European Economic Association, 1(4), 990–1029. https://doi.org/10.1162/154247603322493212
• Shy,Oz. (2001). The Economics of Network Industries. Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.cup.cbooks.9780521800952

Authors

• Васильева Татьяна Александровна
• RAZUMOVSKIY ARTEM DENISOVICH