Competition in Multisided Markets

This chapter examines multiple segments, conventionally analyzed from the perspective of business diversification, from multiple perspectives in a multisided market. Specifically, based on segmental financial data, we conduct an empirical analysis of whether increased sales in the transportation business increase the profit margin of the real estate business of a railroad company. The results show that there are two types of sidedness among many businesses. The effects of both positive and negative indirect network effects were found to exist. In addition, verification of the difference-in-differences based on the initiation event of the mutual traffic interconnection demonstrates the indirect network effect in the transportation business to a certain extent, and indicates that the effect is not uniform in each business, with some businesses showing strong effects and others showing less visible effects.