Matchmakers- The New Economics Of Multisided Platforms [patched] -
Charging the "subsidy side" (the group that attracts others) can kill the network before it starts.
Building a platform is notoriously difficult; the authors highlight that most attempts fail. Successful matchmakers typically employ these strategies: Matchmakers- The New Economics Of Multisided Platforms
The book argues that traditional business strategy (Porter’s Five Forces, focusing on supply chains) fails for platforms. Matchmakers don't make things; they and solve the "chicken-and-egg" problem . Charging the "subsidy side" (the group that attracts
However, matchmakers operate on . This is the magic spark of the MSP model. On a platform like Airbnb, every new host who lists a property makes the platform more valuable for guests. Conversely, every new guest who joins makes the platform more valuable for hosts. Matchmakers- The New Economics Of Multisided Platforms