Loading...
Please wait, while we are loading the content...
Similar Documents
The Elasticity Pricing Rule for Two-sided Markets: A Note
| Content Provider | Scilit |
|---|---|
| Author | Krueger, Malte |
| Copyright Year | 2009 |
| Description | Rochet and Tirole have derived an elasticity rule for relative prices in two-sided markets. This rule is seen as counterintuitive because it seems to imply that the "more elastic side of the market" is charged more. In this note it is argued that this interpretation is based on the assumption that elasticity of demand can be treated as a parameter. If elasticity is treated as function of price, the Rochet-Tirole rule is perfectly in line with economic intuition. |
| Related Links | https://core.ac.uk/download/pdf/12024965.pdf |
| ISSN | 21945993 |
| e-ISSN | 14469022 |
| DOI | 10.2202/1446-9022.1180 |
| Journal | Review of Network Economics |
| Issue Number | 3 |
| Volume Number | 8 |
| Language | English |
| Publisher | Walter de Gruyter GmbH |
| Publisher Date | 2009-01-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: Review of Network Economics Review of Network Economics Two Sided Markets Elasticity Pricing Pricing Rule Note Rochet |
| Content Type | Text |
| Subject | Economics and Econometrics |