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https://doi.org/10.1145/303891...
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Article . 2016 . Peer-reviewed
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Segmenting Two-Sided Markets

Authors: Siddhartha Banerjee; Sreenivas Gollapudi; Kostas Kollias; Kamesh Munagala;

Segmenting Two-Sided Markets

Abstract

Recent years have witnessed the rise of many successful e-commerce marketplace platforms like the Amazon marketplace, AirBnB, Uber/Lyft, and Upwork, where a central platform mediates economic transactions between buyers and sellers. A common feature of many of these two-sided marketplaces is that the platform has full control over search and discovery, but prices are determined by the buyers and sellers. We summarize our results from [Banerjee et al. 2017] where, motivated by this application domain, we study the algorithmic aspects of market segmentation via directed discovery in two-sided markets with endogenous prices. We consider a model where an online platform knows each buyer/seller's characteristics, and associated demand/supply elasticities. Moreover, the platform can use discovery mechanisms (search, recommendation, etc.) to control which buyers/sellers are visible to each other. We develop efficient algorithms for throughput (i.e. volume of trade) and welfare maximization with provable guarantees under a variety of assumptions on the demand and supply functions.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
14
Top 10%
Top 10%
Top 10%
hybrid