Richard Schmalensee’s introduction to the classic Rochet & Tirole article, Platform Competition in Two-Sided Markets, as published in Competition Policy International, January (2015):The press release announcing that Jean Tirole had been awarded the 2014 Nobel Prize in Economic Sciences noted that he had made important theoretical research contributions in a number of areas. One of his most important contributions was the discovery and pioneering analysis of multi-sided platforms in his 2003 paper with Jean-Charles Rochet, Platform Competition in Two-Sided Markets. According to Google Scholar, this paper has been cited over 1800 times, fourth among Jean’s many papers.
The Rochet & Tirole paper has spawned an enormous literature in a very short time”over 200 papers by the end of 2012, and the economics of multi-sided platforms is now a standard component of graduate courses in industrial organization. The RT paper is the first post-2000 academic paper to be deemed a classic by Competition Policy International, an honor it richly deserves….