An edition of Designing a two-sided platform (2007)

Designing a two-sided platform

when to increase search costs?

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Designing a two-sided platform
Andrei Hagiu, Andrei Hagiu
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Last edited by MARC Bot
May 27, 2023 | History
An edition of Designing a two-sided platform (2007)

Designing a two-sided platform

when to increase search costs?

  • 0 Want to read
  • 0 Currently reading
  • 0 Have read

We propose a model for analyzing an intermediary's incentives to increase the search costs incurred by consumers looking for sellers (stores). First, we show that the quality of the search service offered to consumers is more likely to be degraded (i.e. the probability that consumers find their favorite store in the first round of search is less than 1) when the intermediary derives higher revenues from consumers shopping at the lesser-known store relative to revenues from consumers shopping at the more popular store. Second, the intermediary may have an incentive to degrade the quality of search even further when its design decision influences the prices charged by stores. By altering the composition of demand faced by stores, the intermediary can force the latter to price lower and thereby increase total consumer traffic.

Publish Date
Language
English
Pages
45

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Edition Availability
Cover of: Designing a two-sided platform
Designing a two-sided platform: when to increase search costs?
2007, Division of Research, Harvard Business School
in English

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Book Details


Edition Notes

"August 2007"--Publisher's web site.

Includes bibliographical references.

Published in
Boston]
Series
Working paper / Division of Research, Harvard Business School -- 08-010, Working paper (Harvard Business School. Division of Research) -- 08-010

The Physical Object

Pagination
45 p.
Number of pages
45

ID Numbers

Open Library
OL48011416M
OCLC/WorldCat
182946153

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