Multidimensional Platform Design

André Veiga, E. Glen Weyl and Alexander White ()

American Economic Review, 2017, vol. 107, issue 5, 191-95

Abstract: Successful platforms attract not just many users, but also those of the right kind. 'The right kind of user' is one who can either be directly monetized or who differentially attracts other valuable users. Bonacich centrality on the network of user sorting with direct value of monetization captures this feedback loop and thus characterizes the value of user characteristics. We use this value to determine optimal steady-state platform design and reliable means for platforms to reach such a steady state. We apply these results respectively to explain the dynamic growth strategy of social networks and urban development policies of cities.

JEL-codes: D42 D85 R58 Z13 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/aer.p20171044
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.aeaweb.org/articles?id=10.1257/aer.p20171044 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... xHOG8Wde0JRDR5tdpKRs (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... Pt8bgRGAxLx3JbOIE4fm (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:5:p:191-95

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().