Publications
Publications
- January 2018 (Revised February 2018)
- HBS Case Collection
Making Markets
Abstract
Explains how to identify and capitalize on marketplace design opportunities. Defines markets and marketplaces and describes the basic functions of each. Discusses attributes (e.g., heterogeneity of participants' preferences and asymmetry in available information) that determine whether and how marketplaces create value. Explains common causes of market failure and presents a framework for designing marketplaces in response. Discusses tactics for building trust and liquidity when launching new marketplaces as well as challenges encountered as marketplaces mature (e.g., congestion and disintermediation).
Keywords
Marketplaces; Two-Sided Markets; Entrepreneurship; Market Design; Digital Platforms; Marketplace Matching; Market Participation; Market Transactions; Market Entry and Exit; Digital Platforms; Auctions
Citation
Eisenmann, Thomas R., and Scott Duke Kominers. "Making Markets." Harvard Business School Technical Note 818-096, January 2018. (Revised February 2018.)