The Analysis of Two Period Equilibrium of Two-Sided Competing Platforms

Two-sided market is a new issue rising in the theory of industrial organization. This whole text is on the view of platforms completely, researches the optimal pricing for the platforms. Introduces some basic knowledge of two-side markets, and simply summarizes the recent researches. Builds a two- period model, and gives the basic hypothesis. Analyzes the second period equilibrium; according to the results of the second period, analyzes the optimal prices platforms set in the first period. In the last part, gives the main conclusions and the expectation of the further research. Through the analysis of a two-period equilibrium model, it is found that because the switching costs weaken the liquidity of group 1 agents, platforms compete more aggressively in the first period.