The New Economics of Multi-Sided Platforms: A Guide to the Vocabulary

7 Pages Posted: 11 Jun 2016

See all articles by David S. Evans

David S. Evans

Global Economics Group; University College London

Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Date Written: June 9, 2016

Abstract

The new economics of multi-sided platforms involves a number of concepts that are familiar to economists as well as some new ones. This glossary, which is drawn from our book Matchmakers: The New Economics of Multi-sided Platforms, is an attempt to put together the main concepts and to provide short definitions for them. We believe this common vocabulary, which we’re sure others will refine and evolve, will be helpful for research and the exchange of ideas going forward and may serve as a quick primer for those who are new to the field, including students.

Keywords: multisided platforms, two-sided markets, network effects, matchmakers, positive feedback effects, indirect network effects, direct network effects,

JEL Classification: A20, A22, A23, B41, D01, D02, D21, D40, L10, L20, L40, M20

Suggested Citation

Evans, David S. and Schmalensee, Richard, The New Economics of Multi-Sided Platforms: A Guide to the Vocabulary (June 9, 2016). Available at SSRN: https://ssrn.com/abstract=2793021 or http://dx.doi.org/10.2139/ssrn.2793021

David S. Evans (Contact Author)

Global Economics Group ( email )

111 Devonshire St.
Suite 900
Boston, MA 02108
United States

University College London ( email )

Gower St
London WC1E OEG, WC1E 6BT
United Kingdom

Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

Room E62-525
Cambridge, MA 02142
United States
617-253-2957 (Phone)
617-258-6617 (Fax)

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