Multi sided platforms_msp
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Very short outline of multi-sided platforms in the context of free products and services. For illustration purposes. Refer to technical papers for more info.

Very short outline of multi-sided platforms in the context of free products and services. For illustration purposes. Refer to technical papers for more info.

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Multi sided platforms_msp Presentation Transcript

  • 1. Practical considerationshttp://nicolaspujol.com/ 1
  • 2. MSP Outline Overview Transaction diagram http://nicolaspujol.com/ 2
  • 3. MSP Overview MSP: Businesses connecting different groups of customers, such that demand by one group increases demand by the other group and vice versa. This positive interdependence across groups is called indirect network effects. - Andrei Hagiu (2009) Network effect: “magnetic force” created by one group on to the other group Examples: credit card companies (consumers / merchants), shopping malls (customers / stores), web search engines (end users / advertisers), computer operating systems (program developers / end users), video games (game developers / gamers), social networks (end users / advertisers) Transition from brick and mortar to digital delivery of service is catalyst for MSP models http://nicolaspujol.com/ 3
  • 4. Multi-sided platform: 2 transactions Side A Side B Mind share $ Buyer Platform Seller Free goods Services to seller Interaction or transaction http://nicolaspujol.com/ 4
  • 5. Multi-sided platform: 2 transactions Transaction T1 (side A)  Seller delivers free product or service  Buyer pays with mind share Transaction T2 (side B)  Seller sells commercial product or service  Buyer pays with money Side A and side B are statically established http://nicolaspujol.com/ 5
  • 6. info@nicolaspujol.comhttp://nicolaspujol.com/ 6