The Value of User-Specific Information for Two-Sided Matchmakers

This article analyzes the incentives of a monopolistic matchmaker to generate user-specific information. By merging two-sided market modeling with two-sided matching, we derive a micro-foundation of cross-side externalities as a function of the number of potential matches and the accuracy level of u...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:MAGKS - Joint Discussion Paper Series in Economics (Band 48-2014)
Autoren: Brühn, Tim, Götz, Georg, Meinusch, Annette
Format: Artikel
Sprache:Englisch
Veröffentlicht: Philipps-Universität Marburg 2014
Schlagworte:
Online-Zugang:PDF-Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:This article analyzes the incentives of a monopolistic matchmaker to generate user-specific information. By merging two-sided market modeling with two-sided matching, we derive a micro-foundation of cross-side externalities as a function of the number of potential matches and the accuracy level of user-specific information. Incentives to make fixed investments in identification technologies are determined by two effects that work in opposing directions: Whereas economies of scale work in favor of platforms with large customer bases, expected improvements to match quality are more significant for small-scale platforms.
Umfang:45 Seiten
ISSN:1867-3678
DOI:10.17192/es2024.0349