Disintermediation in Two-Sided Marketplaces

Two-sided marketplaces often risk disintermediation: users may rely on the marketplace to find each other but then perform related future transactions—or even the current transaction—without the platform’s involvement and without paying any fees the platform may charge. This technical note assesses which marketplaces are most vulnerable to disintermediation and offers a set of strategies marketplaces can implement in order to reduce their vulnerability.