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Two-Sided Markets: Definition, Key Elements and Instruments for Assessment

Author: Marina S. Balandina and Irina V. Baskakova


The paper examines different approaches to defining two-sided markets, identifies key characteristics that make a market two-sided and suggests a classification of such markets. The authors provide a review of the main instruments for evaluating two-sided nature of a market, including deductive analysis, interview with market participants and assessment of the revealed preferences. The approach to the assessment of the TV advertising market in Yekaterinburg as a two-sided market is proposed and econometric analysis of this market for 2007–2015 is given. Specifically, the demand equations of two sides of the market (advertisers and viewing audience) are assessed, values and signs of indirect network effects are calculated.

Keywords: two-sided market; instruments for the identification of the two-sided nature of a market; TV advertising; market with intermediary platform; demand interdependence; indirect network effects

For citation:

Balandina M. S., Baskakova I. V. Dvustoronnie rynki: opredelenie ponyatiya, klyuchevye kharakteristiki i instrumenty otsenki [Two-Sided Markets: Definition, Key Elements and Instruments for Assessment]. Izvestiya Uralskogo gosudarstvennogo ekonomicheskogo universiteta – Journal of the Ural State University of Economics, 2016, no. 2 (64), pp. 12–20.