The Economics of Platforms
Concepts and Strategy

The first book on platforms that concisely incorporates path-breaking insights in economics over the last twenty years.

Paul Belleflamme (Author), Martin Peitz (Author)

9781108710749, Cambridge University Press

Paperback / softback, published 11 November 2021

270 pages
24.4 x 17 x 1.5 cm, 0.48 kg

'Numerous books have been written about platforms but none of them cover the economics behind platforms in any depth. This path-breaking book fills the gap, covering the key concepts and applications of platform strategy in an accessible but thorough way. As well as being a must-read for practitioners and academic scholars who want to understand platform strategy, it is an ideal textbook for business school or economics courses on the digital economy or platforms. Extensive real world cases from around the world bring to life the economic analysis and numerical examples.' Julian Wright, National University of Singapore

Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.

Prologue
1. Platforms: Definitions and Typology
2. Ratings, Recommendations and the Use of Big Data
3. An Economic Primer on Network Goods
4. Growing a Platform
5. Platform Pricing
6. Platform Design
Epilogue.

Subject Areas: International business [KJK], Economics of industrial organisation [KCD]