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!

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

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Recommendations to the new federal government
Vera Demary / Jürgen Matthes / Axel Plünnecke / Thilo Schaefer IW-Policy Paper No. 26 28. October 2021

What business needs to shape the transformation: Recommendations to the new federal government

Germany is facing major structural challenges stemming from the four trends digitalisation, decarbonisation, demographics and de-globalisation. These trends occur simultaneously and cause additional demand for policy, especially at their interfaces, so that ...

IW

Read the article
Vera Demary at EURACTIV EURACTIV 25. October 2021

China’s digital policy and the impact on European businesses

China has pursued an aggressive agenda on a number of digital issues. IW digitization expert Vera Demary discusses China's strategy for regulating the technology sector and its impact on European companies with EURACTIV.

IW

More about this topic

Content element with id 8880 Content element with id 9713