The economics of platforms is different from what we normally study as markets. In an exchange, we know that the way we ensure we are profitable by having a value gap advantage or by successfully excluding customers. This thumb rule does not work for platforms. Why? 6969 Platforms are unlike companies and don’t provide any product or service Platforms are subject to the effects of indirect network effects Platforms adopt a pricing model where there is a money side and another
subsidy side (9 Platform are subject to effects of network effects Platforms impose large switching costs on their customers
