Viability of two-sided market

Abstract

Two sided markets are economic platforms which bring two distinct user groups together and enable them to share benefits. As part of our research, we investigate various features of a two sided market. First part of this document summarizes and critiques existing literature on two-sided markets. This section of the document is largely based on Thomas Eisenmann s work. Second part of the document introduces the twin concepts of Information Asymmetry and Institutional Voids in the context of two-sided markets. Third part of the document evaluates Eisenmann s conclusions in the light of Information Asymmetry and Institutional Voids. This portion of the document proposes necessary adjustments to the theory in the context of Information Asymmetry and Institutional Voids. The fourth part of this document presents a number of real life cases to establish the distinctive nature of two-sided markets based on Information Asymmetry. The final section proposes a framework to evaluate viability, and execution mode of such two sided markets centered about Information Asymmetry. The document closes with a case on SAP Ganges, a two sided platform that leverages a unique Institutional Void in Indian retail.