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Publications
  • 2007
  • Working Paper
  • HBS Working Paper Series

Multi-Sided Platforms: From Microfoundations to Design and Expansion Strategies

By: Andrei Hagiu
  • Format:Print
  • | Language:English
  • | Pages:26
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Abstract

Multi-sided platforms (MSPs), which bring together two or more interdependent groups of customers, have recently risen to economic and business prominence in many industries. This paper first lays out a simple micro-founded framework which aims to organize academic and managerial thinking about MSPs. It argues that any MSP performs one or both among two fundamental functions: reducing search costs and reducing shared transaction costs among its multiple sides. Using a variety of illustrations, the framework is then used to formulate general principles driving MSP design and expansion strategies: choosing the relevant platform "sides", deciding which fundamental activities to perform and trading off depth against scope of MSP functions.

Keywords

Multi-Sided Platforms

Citation

Hagiu, Andrei. "Multi-Sided Platforms: From Microfoundations to Design and Expansion Strategies." Harvard Business School Working Paper, No. 07-094, May 2007.
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    Finding the Platform in Your Product: Four Strategies That Can Reveal Hidden Value

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    Network Effects Aren't Enough

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More from the Author
  • Finding the Platform in Your Product: Four Strategies That Can Reveal Hidden Value By: Andrei Hagiu and Elizabeth J. Altman
  • Network Effects By: Andrei Hagiu and David B. Yoffie
  • Network Effects Aren't Enough By: Andrei Hagiu and Simon Rothman
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