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e in general and can be identified as classic network externalities. Websites like Facebook and Twitter are examples of this kind of externalities. Another type of externality in two-sided markets is the usage externalities that occur as a result of the interactions in between two different customer groups due to the usage decision. Usage externalities vary since the usage decisions depend on the cost that is decided for the usage by the platform. For example, the only way that the merchant benefits more from the card-based payment systems is that the consumers use the credit cards more than cash for purchases (Rochet and Tirole, 2008, p.544; Cortade, 2006, p.19).

As mentioned before, the main point that the two-sided markets are based on is that it contains positive network externalities. In the positive network externalities; the benefit of consumers in a specific market increases with the number of consumers buying that goods and services in that market. The effects created by the network externalities are not just about the impacts that arise directly. The main economic characteristic of two-sided markets is the existence of indirect network externalities in these markets. Indirect means that these effects of this network take place via complementary components. Accordingly, the benefit of the consumers in the presence of indirect network externalities does not depend on the number of consumers in the same side of the market but the increase in the demand for complementary goods by the consumers in the other side of the market. In two-sided markets where the indirect network effects are seen, the rising demand for the A product will cause an increase in the demand for a product which is complementary and as a result there will be an increase in the value attributed to A product. This is also seen as a positive feedback mechanism. Hardware and software platforms can be given as example for the two-sided markets where indirect network externalities are observed (Evans, 2002, p.32; Roson, 2005, p.144).

Pricing in Two-Sided Markets

In two-sided markets, the most important factor affecting the success of the market is the pricing policy. Pricing in these markets is more difficult than in one-sided markets since determination of the optimal price structure is equally important in addition to the determination of the optimal price level (Choi, 2007, p.2).

Pricing policies in two-sided markets is an issue that attracts attention in the economic literature and there are many studies made on this subject. The common point of all this work, the consideration is not only the demands of customer groups for goods and services or the costs of these goods and services while pricing in two-sided markets. In the price determination it must be known that the two sides of the market is related with each other in terms of price and demand. Because what decides the profit that the platform will obtain is that participation in one side of the market positively effects the participation to the other side (Rysman, 2009, p.49).

In general, the pricing type in two-sided markets is asymmetric pricing. The underlying principle of asymmetric pricing rationality in two-sided markets is the lower pricing of the mentioned side as a result of benefit provided by the increase of demand in one side of the market. In other words, one side of the market significantly pays less compared to the oth