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9 Examples of a Two-sided Market

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A two-sided market is a platform that provides benefits to two distinct groups. The term is often applied to a product, service or platform that has benefits for both firms and their customers. The following are illustrative examples.

Advertising

Readers commonly find the full page glossy ads in fashion magazines to be just as interesting as the articles.

Events

A local festival is good for residents as it makes life more interesting and is good for local shops as it may boost their sales.

Recruitment Agencies

Recruiters work for firms but also provide a service to job seekers.

Self-publishing

A self-publishing platform serves authors who want to publish their books and readers who buy books.

Review Sites

Review platforms such as a restaurant review app allows customers to find a restaurant that suits their tastes. It also helps to reward restaurants that succeed in pleasing customers.

Regulations

Regulations are often designed to protect customers, the environment and workers. Regulations may also benefit firms as they represent a barrier to entry in a market. They can also act as a trade barrier that protects local producers.

Shopping Clusters

A shopping cluster is an area with a large number of shops in the same category. Such clusters benefit customers who find the proximity of shops convenient. It also benefits sellers as shopper clusters are known to attract far more customers than a geographically isolated shop.

Auctions

An auction platform that connects buyers and sellers.

Stock Market

A stock market allows a firm to raise capital and investors to put capital to productive uses.
Overview: Two-sided Market
Type
Definition
A product, service, platform or structure that benefits two distinct groups in a market.
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Added Value
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Club Goods
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Complement Good
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Convenience Good
Ebusiness
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Gig Economy
Middleman Cutting
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Fast Fashion
Market Maker
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Middleman
Niche
One Stop Shop
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Used Goods
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White Label
Micropayments
Microtransactions
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Original Equipment Manufacturer
Product-as-a-Service
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Store Within A Store
Two Sided Market
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