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Management Review Quarterly
Published in: Management Review Quarterly 2/2013

01-04-2013 | State-of-the-Art

Drivers of optimal prices in two-sided markets: the state of the art

Authors: Feriha Zingal, Frauke Becker

Published in: Management Review Quarterly | Issue 2/2013

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Abstract

In two-sided markets, a platform has two groups of customers and enables their interactions. Demand on one market side depends on demand on the other; therefore, when platforms set prices, they must consider this interdependency and set prices on both sides simultaneously. By surveying the vast theoretical marketing and economics literature, this article provides a clear and systematic overview of profit-maximizing pricing in two-sided markets. It identifies and structures the various drivers of those optimal prices. Using this framework, it summarizes the findings from prior research and offers an assessment of the state of the art with regard to drivers of optimal prices and their impacts on a platform’s price setting. This improves understanding of both the principles of two-sided markets and their optimal pricing. Finally, this state of the art paper suggests some directions for further research.
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Metadata
Title
Drivers of optimal prices in two-sided markets: the state of the art
Authors
Feriha Zingal
Frauke Becker
Publication date
01-04-2013
Publisher
Springer-Verlag
Published in
Management Review Quarterly / Issue 2/2013
Print ISSN: 2198-1620
Electronic ISSN: 2198-1639
DOI
https://doi.org/10.1007/s11301-012-0091-8

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