Matchmakers - The New Economics of Multisided Platforms

David S. Evans, Richard Schmalensee

Key Insights from "Matchmakers - The New Economics of Multisided Platforms" 1. **Multisided platforms (MSPs) are business models that connect two or more interdependent groups, creating value for both sides.** 2. **The success of an MSP depends on achieving a critical mass of users on all sides.** 3. **Pricing strategies for MSPs are complex and must consider the value that each side brings to the platform.** 4. **MSPs work best in environments with high levels of network effects, where the value of the platform increases as more users join.** 5. **MSPs must overcome the chicken-and-egg problem (attracting enough users on...

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