On Power and Multi-sided Markets: Internet, Cities, Universities, Hollywood, and Politics
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The idea of the two-sided market is best exemplified by eBay. This is hardly a great website (c. 2018), but it remains valuable because it connects buyers and sellers. I look for stuff there because vendors are there. Vendors sell stuff there because buyers are there. eBay gets its middleman cut, and better websites can't get a foothold since shifting everyone simultaneously is hard. Many tech companies try to do this. Amazon in a similar vein, though it also takes the role of vendor. Uber matches taxis with passengers (but loses money still, and may need to become a fleet operator). There is lock-in because of the two-sided nature of the marketplace and the value to consumers of a variety of suppliers, and to producers of numerous consumers, despite the competitors. Dating services match people seeking contact.
On Power and Multi-sided Markets: Internet, Cities, Universities, Hollywood, and Politics
On Power and Multi-sided Markets: Internet…
On Power and Multi-sided Markets: Internet, Cities, Universities, Hollywood, and Politics
The idea of the two-sided market is best exemplified by eBay. This is hardly a great website (c. 2018), but it remains valuable because it connects buyers and sellers. I look for stuff there because vendors are there. Vendors sell stuff there because buyers are there. eBay gets its middleman cut, and better websites can't get a foothold since shifting everyone simultaneously is hard. Many tech companies try to do this. Amazon in a similar vein, though it also takes the role of vendor. Uber matches taxis with passengers (but loses money still, and may need to become a fleet operator). There is lock-in because of the two-sided nature of the marketplace and the value to consumers of a variety of suppliers, and to producers of numerous consumers, despite the competitors. Dating services match people seeking contact.