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.

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