Competing matchmakers: An experimental analysis

Tanjim Hossain*, Dylan Minor, John Morgan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

Abstract

Platform competition is ubiquitous, yet platform market structure is little understood. Theory models typically suffer from equilibrium multiplicity-platforms might coexist or the market might tip to either platform. We use laboratory experiments to study the outcomes of platform competition. When platforms are primarily vertically differentiated, we find that even when platform coexistence is theoretically possible, markets inevitably tip to the more efficient platform. When platforms are primarily horizontally differentiated, so there is no single efficient platform, we find strong evidence of equilibrium coexistence.

Original languageEnglish (US)
Pages (from-to)1913-1925
Number of pages13
JournalManagement Science
Volume57
Issue number11
DOIs
StatePublished - Nov 2011

Keywords

  • E-commerce
  • Monopoly
  • Platform competition
  • Two-sided markets

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research

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