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Platform Rules: Multi-Sided Platforms as Regulators

Author

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  • Kevin J. Boudreau

    (HEC – Paris School of Management)

  • Andrei Hagiu

    (Harvard Business School, Strategy Unit)

Abstract

This paper provides a basic conceptual framework for interpreting non-price instruments used by multi-sided platforms (MSPs) by analogizing MSPs as "private regulators" who regulate access to and interactions around the platform. We present evidence on Facebook, TopCoder, Roppongi Hills and Harvard Business School to document the "regulatory" role played by MSPs. We find MSPs use nuanced combinations of legal, technological, informational and other instruments (including price-setting) to implement desired outcomes. Non-price instruments were very much at the core of MSP strategies.

Suggested Citation

  • Kevin J. Boudreau & Andrei Hagiu, 2008. "Platform Rules: Multi-Sided Platforms as Regulators," Harvard Business School Working Papers 09-061, Harvard Business School.
    • Handle: RePEc:hbs:wpaper:09-061
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    Keywords

    Platforms; regulation; network effects; distributed innovation;
    All these keywords.

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