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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.
AdvertisingReaders commonly find the full page glossy ads in fashion magazines to be just as interesting as the articles. EventsA 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 AgenciesRecruiters work for firms but also provide a service to job seekers.Self-publishingA self-publishing platform serves authors who want to publish their books and readers who buy books.
Review SitesReview 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.RegulationsRegulations 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 ClustersA 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.AuctionsAn auction platform that connects buyers and sellers.Stock MarketA stock market allows a firm to raise capital and investors to put capital to productive uses.
Business Models
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