Quantitative assessment of cross-side network effects for non-transactional platforms

Abstract

The analysis of cross-network effects is important in considering the impossibility of their direct observation and the impact of cross-network effects on the values of all tests in competition policy, pricing practice and merger valuation. The article summarizes the experience of quantifying cross-network effects for non-transactional platforms. This paper systematizes the methods for assessing cross-network effects (regression equation systems, features of data collection, control variables) used in the study of the mutual influence of the media audience (newspapers, magazines, television channels) and advertising. The results of the analysis reflect the technical feasibility of this task and the requirements for the initial data and expert competences in the application of quantitative methods. The article summarizes the results of empirical estimates which in most cases coincide with the predictions of the theory about the sign (direction) of cross-network effects.