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Some Empirical Aspects of Multi-Sided Platform Industries

The Review of Network Economics

Vol. 2, Issue 3 - September 2003, pp 191-209

  David S. Evans
NERA Economic Consulting
E-mail: [email protected]

  Multi-Sided platform markets have two or more different groups of customers that businesses have to get and keep on board to succeed. These industries range from dating clubs (men and women), to video game consoles (game developers and users), to payment cards (cardholders and merchants), to operating system software (application developers and users). They include some of the most important industries in the economy. A survey of businesses in these industries shows that Multi-Sided platform businesses devise entry strategies to get multiple sides of the market on board and devise pricing, product, and other competitive strategies to keep multiple customer groups on a common platform that internalizes externalities across members of these groups.

Keywords: two-sided markets, platforms, payments

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