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What is a two-sided market? All about Google

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What is a two-sided market?
• A two sided market consists of a platform allowing 2 groups of
clients/providers to interact and which optimizes the revenue distribution
among these groups with the objective of maximizing market sizes.
Exemple of the video game market
Crossed network effects

Internal Price A Price B
network Side A Side B
effects Developers Consumers



Network effects in action

Internal effects Crossed effects
• A potential market for a
• Utility to a new developer developer gets bigger as more
increases as the community of consumers enter the said market
developers grows (shared
knowledge)
• The number of games available
to the consumer increases with
• Utility to a new consumer the number of developers
increases as the community of working on the platform
consumers grows
(secondhand market)
..…….

December 2008 • Everything you always wanted to know about Google… • 28

Publicada em: Tecnologia, Negócios
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