9min chapter

Talking about Platforms cover image

Platform Classics: A Price Theory of Multi-Sided Platforms

Talking about Platforms

CHAPTER

Dynamics of Multi-Sided Marketplaces

This chapter explores the intricate dynamics of multi-sided platforms, focusing on pricing strategies such as insulating tariffs and Pigouvian pricing. Using the newspaper industry as a case study, it discusses how platforms balance the interests of different user groups while navigating the challenges of market power. The chapter emphasizes the need for regulators to adopt a holistic approach to account for the complex interactions between user sides to avoid market distortions.

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