Multi-sided platforms
Subtitle: from microfoundations to design and expansion strategies
By: Andrei Hagiu
Contributors: Harvard Business School
Series: Working paper / Harvard Business School -- 09-115; Working paper (Harvard Business School) -- 09-115
Publisher: Harvard Business School
Published: 2009
Place of publication: Boston]
Language: eng
Number of pages: 26
Description: Multi-sided platforms (MSPs), which bring together two or more interdependent groups of customers, have recently risen to economic and business prominence in many industries. This paper first lays out a simple micro-founded framework which aims to organize academic and managerial thinking about MSPs. It argues that any MSP performs one or both among two fundamental functions: reducing search costs and reducing shared transaction costs among its multiple sides. Using a variety of illustrations, the framework is then used to formulate general principles driving MSP design and expansion strategies: choosing the relevant platform "sides", deciding which fundamental activities to perform and trading off depth against scope of MSP functions.
Notes: "April 2009"--Publisher's website.

Includes bibliographical references.