1. Home
  2. Studies
  3. The Economics of Platforms
Vera Demary / Christian Rusche IW-Analyse No. 123 13. September 2018 The Economics of Platforms

Digital platforms already dominate the top 10 of the world’s most valuable firms. The specific characteristics of their business model, such as quick growth and market power soon after market entry, have provoked public discourse.

Download PDF
The Economics of Platforms
Vera Demary / Christian Rusche IW-Analyse No. 123 13. September 2018

The Economics of Platforms

IW-Analyse

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

Digital platforms already dominate the top 10 of the world’s most valuable firms. The specific characteristics of their business model, such as quick growth and market power soon after market entry, have provoked public discourse.

This paper analyzes digital platforms’ business models, the reasons for their success and the challenges they present. Digital platforms offer an online forum for conducting transactions and therefore are able to dramatically reduce transaction costs, which creates value for platform users. Generally, digital platforms are aware of the high and increasing importance of data. By collecting and combining data from the different user groups, digital platforms are able to improve their service for existing users and to attract new user groups. Digital platforms’ market power and their control over large, valuable sets of data have attracted the attention of regulatory authorities and led to investigations and fines. Economic policy should aim to protect consumers while still fostering the digital platform business model.

Content element with id 5037
Download PDF
The Economics of Platforms
Vera Demary / Christian Rusche IW-Analyse No. 123 13. September 2018

Vera Demary / Christian Rusche: The Economics of Platforms

IW-Analyse

Download PDF

German Economic Institute (IW) German Economic Institute (IW)

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Michael Hüther / Matthias Diermeier in Ernest Gnan / Christoph Schneider / Claudia Stowasser (Hg.) Schwerpunkt Außenwirtschaft 2021/2022 External Publication 4. July 2022

Globalisation under pressure?: How current megatrends shape the patters of international trade, capital flows and technology diffusion

Deglobalisation, digitalisation, decarbonisation, and demographic change have already left their mark on the global economy. In the future the multiple transformations that the international patterns of specialisation undergo are likely to accelerate as the ...

IW

Read the article
Jan Büchel / Barbara Engels in European Liberal Forum External Publication 4. July 2022

The Importance of the Data Economy for Europe’s Digital Strategic Autonomy

European companies need to have the ability to store, process, use, and share data securely and autonomously, for example by using cloud services based on agreed quality standards, values, and legislation.

IW

More about this topic

Content element with id 8880 Content element with id 9713