Stanford University


Quality Choice and Competition in Two-Sided Markets


Nestor Duch-Brown
Georgios Petropoulos


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.

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Stanford University