339Platforms have become a specific format of multi-sided markets in the 21st century digital economy. The paper provides theoretical examination of business and pricing models which underlie the success of many of modern fastestgrowing and most powerful companies such as Apple, Microsoft, Google, Amazon, eBay, Airbnb, Uber, Visa, Sony, etc. The author reviews four different types of multi-sided platforms: matching, multimedia, payment and software platforms. It is shown that platform business models are based on some unique features, including: technological infrastructure that provides interaction of agents; direct (among agents on the one side) and indirect (among agents on different sides) network externalities which make platforms more valuable to their customers; non-neutral price structure using to attract more clients on all sides. The author focuses on the main question determining the success of multi-sided platforms: how to create and monetize network externalities? It is stressed that the optimal platform price structure depends on the intensity of the indirect network externalities and the price sensitivity of agents. Special attention is paid to developing ways of launching a platform and monetizing the value created by network externalities. Basing on the platform economics statements, the author makes out two directions of the future “platform revolution”. The first direction will be the increasing competition among platforms that is no longer purely technological rivalry and a struggle for the critical mass of agents, which makes the platform viable. It is rapidly shifting towards service characteristics and prices. The second direction will be the dramatic growth of the business models associated with the Internet of things platforms (IoT-platforms).
digital economy, platforms, multi-sided markets, platform economy, network externalities, network effects monetization, pricing, non-neutral price structure, platform business model, Internet of things
REFERENCES
1. Rochet J., Tirole J. Platform Competition in Two-Sided Markets. Journal of the European Economic Association, 2003, vol. 1, no. 4, pp. 990-1029.
2. Rochet J., Tirole J. Two-Sided Markets: a Progress Report. The RAND Journal of Economics, 2006, vol. 37, no. 3, pp. 645-667.
3. Caillaud B., Jullien B. Chicken and Egg: Competition among Intermediation Service Providers. The RAND Journal of Economics, 2003, vol. 34, no. 2, pp. 309-328.
4. Armstrong M. Competition in Two-Sided Markets. The RAND Journal of Economics, 2006, vol. 37, no. 3, pp. 668-691.
5. Rysman M. The Economics of Two-Sided Markets. Journal of Economic Perspectives, 2009, vol. 23, no. 3, pp. 125-143.
6. Evans D. S. Platform Economics: Essays on Multi-Sided Businesses. Chicago, Competition Policy International (CPI), 2011. 449 p. Available at: https://www.competitionpolicyinternational.com/assets/Hot-Tubs/SSRN-id1974020.pdf (accessed 05.10.2019).
7. Yablonskii S.A. Mnogostoronnie platformy i rynki: osnovnye podkhody, kontseptsii i praktiki [Multi-sided platforms and markets: main approaches, concepts and practices]. Rossiiskii zhurnal menedzhmenta, 2013, vol. 11, no. 4, pp. 57-78.
8. Rozanova N.M. Setevaya konkurenciya kak faktor konfiguracii sovremennykh rynkov [Network competition as determinant of contemporary markets’ configuration]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2016, vol. 60, no. 4, pp. 13-20.
9. Strelets I.A. Mul’tiplikatsionnye effekty v setyakh [Multiplier effects in networks]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2017, vol. 61, no. 6, pp. 77-83. DOI:10.20542/0131-2227-2017-61-6-77-83
10. Antipina O.N. Skol’ko stoit tsifra? O prirode tseny blag v tsifrovoi ekonomike [How much is the Digit? On the nature of value in the digital economy]. Obshchestvennye nauki i sovremennost’, 2019, no. 5, pp. 5-16. DOI:10.31857/S086904990006558-5
11. Reillier L.C., Reillier B. Platform Strategy: How to Unlock the Power of Communities and Networks to Grow Your Business. London, New York, Routledge, 2017. 221 p.
12. Keller W. Entrepreneur Magazine’s Ultimate Guide to Platform Building. Irvine, Entrepreneur Press, 2016. 202 p.
13. Parker G.G., Alstyne van M.W., Choudary S.P. Platform Revolution: how Networked Markets are Transforming the Economy – and how to Make Them Work for You. London, New York, W. W. Norton & Company, 2017. 336 p.
14. Stolbov M.I., Brendeleva E.A., eds. Osnovy tscifrovoi ekonomiki: uchebnoe posobie [The fundamentals of the digital economy]. Moscow, Izdatel’skii dom “Nauchnaya biblioteka”, 2018. 238 p.
15. Tapscott D. The Digital Economy 20th Anniversary Edition: Rethinking Promise and Peril in the Age of Networked Intelligence. New York, McGraw-Hill Education, 2015. 413 p.
Registered in System SCIENCE INDEX
No comments