Platforms: A Multiplicity of Research Opportunities
21 Pages Posted: 24 Mar 2015 Last revised: 2 Aug 2015
Date Written: May 31, 2014
Platforms refer to intermediaries that facilitate economic interaction between two sets of agents wherein the decisions of one set of agents is likely to have an effect on the other via direct and/or indirect externalities. Given their nature, platforms need to find the appropriate balance between the competing objectives of agents and act as catalysts by facilitating the beneficial effects of externalities. In this paper, we discuss the current theoretical and empirical literature on two-sided platforms. We then identify three dimensions that offer opportunities to advance the empirical literature: (a) unanswered theoretical and conceptual questions, (b) data-related opportunities, and (c) methodological challenges.
Keywords: Platforms, Two-sided Markets, Internet Commerce, Simultaneity
JEL Classification: L00, M31
Suggested Citation: Suggested Citation