Table of Contents

Handbook on the Economics of Retailing and Distribution

Handbook on the Economics of Retailing and Distribution

Edited by Emek Basker

This Handbook explores and critically examines current research in economics and marketing science on key economic issues in retailing and distribution. Providing a rich perspective for the discussion of public policy, contributions from several disciplines and continents range from the history of chains and the impact of multinational retailers on international trade patterns; to the US merger policy in the retail context, the rise of the Internet and consumer-to-consumer sales. This state-of-the-art Handbook is an essential reference for students and academics of economics and marketing science and offers outsiders valuable perspectives on operations research, data analytics, geography, and sociology.

Chapter 19: Two-sided e-commerce marketplaces and the future of retailing

Steven Tadelis

Subjects: business and management, marketing, economics and finance, industrial economics


This chapter describes the growth and proliferation of online two-sided marketplaces starting with their emergence in the mid-1990s. I begin with a brief history of online marketplaces, followed by some of the key strategic and economic considerations of online marketplaces. Special emphasis is placed on price discovery and sales mechanisms, as well as on the importance of reputation and feedback mechanisms in the success of online marketplaces. I also discuss how online marketplaces have emerged as a laboratory to test a variety of theories about buyer and seller behavior in the field.

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