Matchmakers and trustbusters.

The setting of prices in two-sided businesses intrigues economists and incites regulators. Such matchmaking businesses include singles bars matching the lovelorn of both male and females; television channels courting viewers and advertisers; personal computer operating systems attracting both softw...

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Bibliographic Details
Published in:Economist Vol. 377; pp. 88 - 89
Format: Article
Published: Economist Newspaper Limited December 10 2005
Online Access:View this record in EBSCOhost
Description
Summary:The setting of prices in two-sided businesses intrigues economists and incites regulators. Such matchmaking businesses include singles bars matching the lovelorn of both male and females; television channels courting viewers and advertisers; personal computer operating systems attracting both software designers and software users; and payment cards that recruit both banks and retailers. Companies in these markets adopt different strategies to overcome the same intrinsic problems: they want to get both sides on board, keep them happy, and encourage them to take advantage of each other.