Business Information Systems and Technology: Two-Sided Markets
Pricing the platform • Specify the money side & the subsidy side • Consider these pricing strategies: subsidize quality and price-sensitive users & secure “marquee” users’ exclusive participation in the platform
Winner-take-all battles • Whether the two-sided market will eventually be served by a single platform • Whether to share the single platform or fight for proprietary control This analysis should be a reflection of your well-developed thoughts. Note: Some platforms are multi-sided platforms, such as DoorDash and Postmates. For example, DoorDash is an example of a three-sided market. It connects three groups of users: Dashers (delivery people), customers, and merchants (restaurants). If you like to challenge yourself, you can apply what you learned in a two-sided market to analyze pricing the platform and winner-take-all battles for a multi-sided platform.
