Competition among Multi-Sided Platforms

David S. Evans

LECG and University College London

7 June 2007

2nd Lear Conference on the Economics of Competition Law

Rome, Italy

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Multi-Sided Platforms: Powerbrokers In The Global Economy

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Today’s Discussion

The Nature Of Competition

The Digital Music Business5

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When Do Multi-Sided Platforms Compete?

Search-Based Advertising4

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The Catalyst Age6

What Is A Multi-Sided Platform?

What Is A Multi-Sided Platform?

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The Birth Of The Charge Card

Merchants paid 7% fee

Cardholders paid small fee roughlyequal to the value of the float

Profits entirely from the merchant side

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Catalytic Reaction For Charge Cards

330 restaurants and 42,000 consumers one year later

330 restaurants and 42,000 consumers one year later

14 restaurants and 200 consumers to start

14 restaurants and 200 consumers to start

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