Designing Auction-Based Marketplaces: Research and Practice at MSR


September 27, 2011


Platform markets have two groups of users, and these have both direct and indirect network effects throughout the market as a whole. Platform markets include media markets, credit cards, dating, and video games. There are also auction-based platforms, dealing more with advertising, display, and search. What matters in market design is the focus on efficiency and long-term participation, extracting rents and determining participation and first-order issues between competitions.