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The Economics of Platforms

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  • Belleflamme,Paul
  • Peitz,Martin

Abstract

Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.

Suggested Citation

  • Belleflamme,Paul & Peitz,Martin, 2021. "The Economics of Platforms," Cambridge Books, Cambridge University Press, number 9781108482578, January.
    • Handle: RePEc:cup:cbooks:9781108482578
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    Cited by:

    1. Alexandre de Cornière & Andrea Mantovani & Shiva Shekhar & Alexandre de Cornière, 2023. "Third-Degree Price Discrimination in Two-Sided Markets," CESifo Working Paper Series 10618, CESifo.
    2. Tetsuya Shinkai & Naoshi Doi, 2023. "Menu-pricing and Quality Decisions of a Platform Monopolist," Discussion Paper Series 252, School of Economics, Kwansei Gakuin University.
    3. Bruno Jullien & Alessandro Pavan & Marc Rysman, 2021. "Two-sided markets, pricing, and network effects," Post-Print hal-03828345, HAL.
    4. Yassine Lefouili & Leonardo Madio, 2022. "The economics of platform liability," European Journal of Law and Economics, Springer, vol. 53(3), pages 319-351, June.
    5. Gustavo Berganti~nos & Juan D. Moreno-Ternero, 2024. "The Shapley index for music streaming platforms," Papers 2411.07166, arXiv.org.
    6. Silva, Victo J. & Chiarini, Tulio & Ribeiro, Leonardo Costa, 2022. "The Brazilian digital platform economy: a first approach," SocArXiv d478v, Center for Open Science.
    7. Dyskeland, Ole Kristian & Foros, Øystein, 2023. "Multihoming and market expansion: Effects on media platforms’ pricing and content creation incentives," Economics Letters, Elsevier, vol. 232(C).
    8. Luis Guijarro & Vicent Pla & Jose Ramon Vidal, 2024. "ISP pricing and Platform pricing interaction under net neutrality," Papers 2401.14791, arXiv.org.
    9. Tetsuya Shinkai & Naoshi Doi, 2023. "Price and quality decision of a monopoly platform for transaction with shipping," Discussion Paper Series 252-2, School of Economics, Kwansei Gakuin University, revised Jul 2023.
    10. Maria Kukurba & Aneta Ewa Waszkiewicz & Mariusz Salwin & Andrzej Kraslawski, 2021. "Co-Created Values in Crowdfunding for Sustainable Development of Enterprises," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    11. Hildenbrand, Hannah-Maria & von Rueden, Christina & Viete, Steffen, 2021. "Measuring the online platform economy in Germany," Working Papers 07/2021, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    12. Alessandro De Chiara & Juan-José Ganuza & Fernando Gómez & Ester Manna & Adrián Segura, 2023. "Platform Liability with Reputational Sanctions," Working Papers 1403, Barcelona School of Economics.
    13. Prado, Tiago S., 2021. "Kill Zones? Effects of Big Tech Start-up Acquisitions on Innovation," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238049, International Telecommunications Society (ITS).
    14. Steffen, Nico & Wiewiorra, Lukas & Kroon, Peter, 2021. "Wettbewerb und Regulierung in der Plattform- und Datenökonomie," WIK Discussion Papers 481, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    15. Takanori ADACHI, 2022. "Recent Advances in the Theory of Third-Degree Price Discrimination: A Brief Survey," Discussion papers e-22-006, Graduate School of Economics , Kyoto University.
    16. Mary Clare Peate, 2023. "Why Are Some Social Media Sites Free to Use?," Page One Economics Newsletter, Federal Reserve Bank of St. Louis, pages 1-5, May.
    17. Kuchinke, Björn A. & Rösch, Jürgen, 2022. "Die Rolle des öffentlich-rechtlichen Rundfunks im Zeitalter von TikTok: Ökonomische Anmerkungen," Ilmenau Economics Discussion Papers 167, Ilmenau University of Technology, Institute of Economics.

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