Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
권호 표지

Two-Sided Market and Entry

양면시장에서의 진입가능성 연구

  • 장대철 (한국과학기술원 테크노경영대학원) ;
  • 정영조 (한국과학기술원 테크노경영대학원) ;
  • 안병훈 (한국과학기술원 테크노경영대학원)
  • Published : 2006.12.31
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Abstract

Previous research on two-sided markets has, for the most part, concentrated on indirect network externalities between buyers alto sellers. This paper considers direct competition effect among sellers and among buyers as well as indirect network externalities. We develop an analytic model of C2C e-marketplaces and examine whether a monopolistic incumbent could successfully deter new entry into its market. We find that the effect of the number of sellers or buyers on the price of goods depends on whether sellers have decided to sell the goods using an auction or fixed pricing rule and on the characteristics of the goods. We argue that when the effect of the number of sellers on the price of goods is significantly larger than that of buyers, there is a high possibility of entry. In particular, we show that entry becomes more difficult to deter as fixed-price format is adopted more frequently or the proportion of collectables is relatively low.

Keywords

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