Whatfactorsdeterminewhoshouldpaydoespayinghave

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Unformatted text preview: hat allo ws users to play against each o ther has same-side benef its. If yo ur buddies use Xbo x Live and yo u want to play against them, yo u’re mo re likely to buy an Xbo x. K E Y TAK E AWAYS I n one‐sided markets, users gain benefits from interacting with a similar category of users (think instant messaging, where everyone can send and receive messages to one another). I n two‐sided markets, users gain benefits from interacting with a separate, complementary class of users (e. g. , in Groupon’s daily‐deal business, deal subscribers are attracted to the platform because there are more vendors offering deals, while vendors are attracted to Groupon because it has the most customers to receive the deals). QU E S TI ONS AND E XE RC I S E S 1. What is the difference between same‐side exchange benefits and cross‐side exchange benefits? 2. What is the difference between a one‐sided market and a two‐sided market? 3. Give examples of one‐sided and two‐sided markets. 4. I dentify examples of two‐sided...
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This document was uploaded on 01/31/2014.

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