New study reveals how platform location impacts market equilibrium and benefits
The article explores how two-sided platforms in a market with different types of customers reach a balance. They used a duopoly model with agents on each side and Hotelling's concept of diverse preferences. The study found the exact equilibrium values for a market with two platforms. They also looked at how the platforms' success is affected by network effects. Additionally, the research delved into the best locations for these platforms in the market.