Browsing by Author "Snihur, Yuliya"

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    CENTRALIZATION DECISIONS IN MULTISIDED PLATFORM PORTFOLIOS
    (2024) Tarzijan, Jorge; Snihur, Yuliya
    Despite the growing evidence that many firms operate several multisided platforms (MSPs) simultaneously, we lack a comprehensive understanding of the managerial and public policy challenges involved. We examine the determinants and consequences of centralization decisions for firms managing MSP portfolios. A starting point is that on top of the indirect network effects and matching needs between user groups of the same MSP, in an MSP portfolio there are indirect network effects and matching needs across sides of the different MSPs managed by the firm. These additional interdependencies can amplify the effects of cross-selling and data-sharing in such portfolios. Our analysis suggests the higher relevance of a centralized design of an MSP portfolio due to the coordination benefits when indirect network effects and matching needs intensify the payoffs from cross-selling and data-sharing in MSP portfolios. We also explain how a more centralized design of such portfolios enables a broad set of pricing strategies, barriers to imitation, and acquisitions, and discuss managerial and public policy implications.