Platform Traps and the Future of Decentralization

Guest Andrei Hagiu

Bio

Associate Professor in Information Systems at Boston University
Runs the Platform Chronicles blog together with Julian Wright.
Advisor and consultant for startups building platform business models and large companies seeking to turn products into platforms.

Summary This episode features Andrei Hagiu, an expert in platform businesses. Hagiu defines platform businesses as enabling customer interactions, such as marketplaces or social networks. The conversation explores the evolution of platforms, including the concept of platform traps, where dominant platforms can exert significant power over sellers. The discussion touches upon the potential for collective action among sellers to counter platform power and the role of government regulation in this dynamic. Hagiu and the hosts delve into the complexities of multihoming, winner-take-all dynamics, and the influence of emerging technologies like blockchain on platform business models. The episode concludes by examining factors that contribute to marketplace success, particularly in the B2B context, where fragmentation and inefficiency present opportunities for platform-based solutions.

Publications & Papers Mentioned

Hagiu, A., & Wright, J. (2015). Multi-sided platforms. International Journal of Industrial Organization, 43, 162-1741.
Hagiu, A., & Wright, J. (2024). Will that marketplace succeed? Harvard Business Review, 102(4), 94-10358.
Hagiu, A., & Wright, J. (2020). When data creates competitive advantage. Harvard Business Review, 98(1), 94-1011.

Link to Andrei's website https://andreihagiu.com/bio/

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