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Regulating prices in two-sided markets: the waterbed experience in mobile telephony

Genakos, Christos and Valletti, Tommaso (2012) Regulating prices in two-sided markets: the waterbed experience in mobile telephony. Telecommunications Policy, 36 (5). pp. 360-368. ISSN 0308-5961

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Abstract

The distinguishing feature of two-sided markets is that the pricing structure, that is, the relative prices charged to each side, matters. Regulators need to understand and account for the interdependence of prices in both sides. Some interventions that lower the prices on one side can result in higher prices on the other side of such markets. This article reviews the recent literature analyzing this waterbed phenomenon in mobile telephony and draws some more general lessons for policy interventions in two-sided markets.

Item Type: Article
Official URL: http://www.journals.elsevier.com/telecommunication...
Additional Information: © 2012 Elsevier
Library of Congress subject classification: H Social Sciences > HE Transportation and Communications
H Social Sciences > HG Finance
Journal of Economic Literature Classification System: D - Microeconomics > D4 - Market Structure and Pricing
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 02 Mar 2012 12:52
URL: http://eprints.lse.ac.uk/42099/

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