UKCustomPapers | Business Information Systems and Technology: Two-Sided Markets

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.
Must-Read Reference:
Eisenmann, T., Parker, G., & Van Alstyne, M. W. (2006). Strategies for two-sided
markets. Harvard business review, 84(10), 92.
You can also cite other references if need (e.g., Wikipedia). Please remember to cite the
references both in the text and in the reference section at the end of your assignment

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