Two-sided marketplaces charge both sides of the transaction to optimize network effects and platform participation
Economic literature on two-sided platforms demonstrates that pricing strategies on both sides of a transaction are structured specifically to leverage network effects and manage platform participation.
Both retrieved papers support the fundamental economic principle that two-sided platforms use tailored pricing and subsidization on different sides of the market to account for network effects and optimize participation.
Yu Zhang. Research on Pricing Strategies for Two-sided Platform Business Expansion Considering Asymmetric Network Effects. 2026. https://doi.org/10.54097/y58rn051
This study analyzes pricing strategies in two-sided platforms by considering asymmetric cross-network effects, showing how platforms balance charging and subsidizing different sides to optimize expansion.
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А.А. Ильченко. Экономика ценообразования в цифровых экосистемах: типология сетевых эффектов и механизмы формирования двусторонних платформ. 2026. https://doi.org/10.47576/2949-1916.2025.10.10.022
This article discusses how two-sided pricing, subsidization, and cross-financing are used as mechanisms driven by network effects to ensure the sustainability of digital platforms.
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