What are two-sided platforms?

- Markets in which one or several platforms enable interactions between two or multiple user groups (e.g. ads and readers) and try to get them “on board” by appropriately charging and governing users on each side of the platform - Presence of network externalities: the effect that one user of a good or service has on the value of that product to other users - Two sided markets create value by reducing search costs or by reducing other transaction costs (or both) on each side - The volume of interactions between user groups depends on the price structure of the fees charged by the platform