Matchmakers: The New Economics of Multisided Platforms
Harvard Business Review Press, May 3, 2016 - Business & Economics - 272 pages
Many of the most dynamic public companies, from Alibaba to Facebook to Visa, and the most valuable start-ups, such as Airbnb and Uber, are matchmakers that connect one group of customers with another group of customers. Economists call matchmakers multisided platforms because they provide physical or virtual platforms for multiple groups to get together. Dating sites connect people with potential matches, for example, and ride-sharing apps do the same for drivers and riders. Although matchmakers have been around for millennia, they’re becoming more and more popular—and profitable—due to dramatic advances in technology, and a lot of companies that have managed to crack the code of this business model have become today’s power brokers.
Don’t let the flashy successes fool you, though. Starting a matchmaker is one of the toughest business challenges, and almost everyone who tries to build one, fails.
In Matchmakers, David Evans and Richard Schmalensee, two economists who were among the first to analyze multisided platforms and discover their principles, and who’ve consulted for some of the most successful platform businesses in the world, explain how matchmakers work best in practice, why they do what they do, and how entrepreneurs can improve their chances for success.
Whether you’re an entrepreneur, an investor, a consumer, or an executive, your future will involve more and more multisided platforms, and Matchmakers—rich with stories from platform winners and losers—is the one book you’ll need in order to navigate this appealing but confusing world.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
advertisers agents Alibaba Alibaba.com Android app developers Apple Pay attract Aventura Mall B2B exchanges Bank broadband business model buyers card networks cash chapter charge connect consumers cost countries create critical mass customers diners drivers e-money eBay economic economists ecosystem entrepreneur example Facebook figure fleet-card companies frictions Friendster Google growth handset makers ignition increase indirect network effects industries interact Internet iPhone ISPs Kenya launched looking M-PESA matchmakers merchants Microsoft million mobile carriers mobile devices mobile money mobile phone multisided platforms MySpace Netflix network effects newspapers nightclub OpenTable operating system participants payment card PayPal percent personal computers physical problem profit registered users reservations restaurants retailers revenue sell sellers shoppers shopping malls single-sided firm smartphones started strategy subsidy side Symbian terminals There’s traffic transactions truck fleets truck stops turbocharged two-sided platform Uber viewers YouTube