Two-Sided Market
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Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. In some networks, users are homogeneous, that is, they all perform similar functions. For example, although participants in a telephone network originate and receive calls, these roles are transient. Almost all phone users play both roles at different times. Likewise, almost all instant messaging, FAX, and email users both. Networks with homogenous users are called one-sided to distinguish them from two-sided networks, which have two distinct user groups whose respect...
Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. In some networks, users are homogeneous, that is, they all perform similar functions. For example, although participants in a telephone network originate and receive calls, these roles are transient. Almost all phone users play both roles at different times. Likewise, almost all instant messaging, FAX, and email users both. Networks with homogenous users are called one-sided to distinguish them from two-sided networks, which have two distinct user groups whose respective members consistently play the same role in transactions. In a two-sided network, members of each group exhibit a preference regarding the number of users in the other group; these are called cross-side network effects. Each group''s members may also have preferences regarding the number of users in their own group; these are called same-side network effects.
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