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Multidimensional Platform Design

Author

Listed:
  • André Veiga
  • E. Glen Weyl
  • Alexander White

Abstract

Successful platforms attract not just many users, but also those of the right kind. 'The right kind of user' is one who can either be directly monetized or who differentially attracts other valuable users. Bonacich centrality on the network of user sorting with direct value of monetization captures this feedback loop and thus characterizes the value of user characteristics. We use this value to determine optimal steady-state platform design and reliable means for platforms to reach such a steady state. We apply these results respectively to explain the dynamic growth strategy of social networks and urban development policies of cities.

Suggested Citation

  • André Veiga & E. Glen Weyl & Alexander White, 2017. "Multidimensional Platform Design," American Economic Review, American Economic Association, vol. 107(5), pages 191-195, May.
    • Handle: RePEc:aea:aecrev:v:107:y:2017:i:5:p:191-95
    Note: DOI: 10.1257/aer.p20171044
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    Citations

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    Cited by:

    1. Bruno Jullien & Alessandro Pavan & Marc Rysman, 2021. "Two-sided markets, pricing, and network effects," Post-Print hal-03828345, HAL.
    2. Holger Karl & Dennis Kundisch & Friedhelm Meyer auf der Heide & Heike Wehrheim, 2020. "A Case for a New IT Ecosystem: On-The-Fly Computing," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 467-481, December.
    3. Juan Manuel Sanchez‐Cartas & Gonzalo León, 2021. "Multisided Platforms And Markets: A Survey Of The Theoretical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(2), pages 452-487, April.
    4. Luís Cabral, 2019. "Towards a theory of platform dynamics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(1), pages 60-72, January.
    5. Ying-Ju Chen & Tinglong Dai & C. Gizem Korpeoglu & Ersin Körpeoğlu & Ozge Sahin & Christopher S. Tang & Shihong Xiao, 2020. "OM Forum—Innovative Online Platforms: Research Opportunities," Manufacturing & Service Operations Management, INFORMS, vol. 22(3), pages 430-445, May.

    More about this item

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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