Specialization and Exclusion in Two Sided Markets

Abstract

When will a platform specialize in a sector and when a platform will choose to contain a variety of sectors? In reality, we see that specialized platforms like specialized markets and malls with a variety of sectors coexist. This paper tries to investigate the reasons for specialization in a sector when the platform size is limited and when the platform size is not limited in a two sided market context.

Keywords: two-sided markets, specialization