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Another tale of two-sided markets
Working paper   Open access

Another tale of two-sided markets

Hans Jarle Kind and Frank Stähler
06/2007
Handle:
https://hdl.handle.net/10523/1139

Abstract

Hotelling general density function media location HF Commerce HF5601 Accounting H Social Sciences (General) HB Economic Theory
This note generalizes the frequently used Hotelling model for two-sided markets. We demonstrate an invariance theorem: advertisement levels neither depend on the media price nor on the location of the media firm. An increase in advertising revenues does not change location but only the media price. In conclusion, a Hotelling model of two-sided markets is equivalent to one of one-sided markets. JEL-Classification: D43, L82.
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