The Business of Platforms, Networks, and Two-Sided Markets

Catalog description

We analyze the business of platforms, such as Uber, Airbnb, credit cards, eBooks, cell phones, that bring together two sides of a market (drivers and users; apartments and users; merchants and consumers; ...). In platforms, there are positive feedback effects. The more users use Uber, the more drivers it attracts, and vice versa. Feedback effects result in high market concentration and high profits for the leading companies. In platform markets, smaller companies tend to be marginalized or exit. We will study the factors and strategies that lead to success and high profitability of platforms and apply them to Uber, Airbnb, credit cards, eBooks, cell phones, computer operating systems, and other platform industries. We will also discuss the antitrust intervention of the US government and the EU in digital platforms markets.