Stanford University

DIGITAL PLATFORMS

Quality Choice and Competition in Two-Sided Markets

Researchers

Nestor Duch-Brown
Georgios Petropoulos

Abstract

In online markets, service quality is a strategic variable that is equally important as price. We develop a measure of service quality of two-sided platforms based on survey data. We empirically evaluate how the choice of service quality by each platform in each side of the market (consumers and producers) depends on the intensity of network effects as well as the level of competition and multihoming.

Related Research

Stanford University