Platforms & Data Science
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This document discusses the concept of network effects, where the value of a good or service increases with the number of others using it. It provides examples of two-sided markets like eBay, Expedia, Xbox, American Express, YouTube, Airbnb, Mechanical Turk, LinkedIn, and Android that benefit from network effects by attracting more users on each side - for example, more buyers make a platform more attractive to sellers, and vice versa.
Platforms & Data Science
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- 3. How are these related? Each Side Attracts More of the Other – Network Effects eBay Buyers Expedia Travelers Xbox Gamers AmEx CardHolders YouTube Viewers Airbnb Renters Mechanical Turk Jobs LinkedIn Job Seekers Android Users eBay Sellers Expedia Airlines/Hotels Xbox Developers AmEx Merchants YouTube Videographers Airbnb Hosts Mechanical Turk Laborers LinkedIn Employers Android Developers
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- 6. HOSTS GUESTS
- 7. HOSTS GUESTS
- 10. HOSTS GUESTS % of transaction
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