Multidimensional platform design
File(s)aer.p20171044.pdf (483.43 KB)
Published version
Author(s)
Veiga, André
Weyl, E Glen
White, Alexander
Type
Journal Article
Abstract
Successful platforms attract not just many users, but also those of the right kind. 'The right kind of user' is one who can either be directly monetized or who differentially attracts other valuable users. Bonacich centrality on the network of user sorting with direct value of monetization captures this feedback loop and thus characterizes the value of user characteristics. We use this value to determine optimal steady-state platform design and reliable means for platforms to reach such a steady state. We apply these results respectively to explain the dynamic growth strategy of social networks and urban development policies of cities.
Date Issued
2017-05-01
Date Acceptance
2017-05-01
Citation
American Economic Review, 2017, 107 (5), pp.191-195
ISSN
0002-8282
Publisher
American Economic Association
Start Page
191
End Page
195
Journal / Book Title
American Economic Review
Volume
107
Issue
5
Copyright Statement
© 2017 by the American Economic Association. Permission to make digital or hard copies of part or all of American Economic Association publications for personal or classroom use is granted without fee provided that copies are not distributed for profit or direct commercial advantage and that copies show this notice on the first page or initial screen of a display along with the full citation, including the name of the author. Veiga, André, E. Glen Weyl, and Alexander White. 2017. "Multidimensional Platform Design." American Economic Review, 107 (5): 191-95. Copyrights for components of this work owned by others than AEA must be honored. Abstracting with credit is permitted.
Identifier
https://www.aeaweb.org/articles?id=10.1257/aer.p20171044
Subjects
14 Economics
15 Commerce, Management, Tourism and Services
Economics
Publication Status
Published
Date Publish Online
2017-05-01