Measuring Market Power In Multi-Sided Markets

By Kate Collyer, Hugh Mullan & Natalie Timan – 

With the dawn of the digital age, multi-sided markets are everywhere. From booking platforms for hotels to food delivery services as well as more traditional markets such as newspapers or radio broadcasting, multi-sided markets present competition experts with a unique set of challenges when it comes to the assessment of market power. In this article, the authors explore the key features of multi-sided markets that set them apart – the role of indirect network effects, tipping and single or multi-homing – and offer some practical suggestions for the assessment of market power.