In a two-sided market, the platform may offer different prices to different group of end users due to
A) the budget constraints of end users.
B) substitution effects between the end users and the platform.
C) different network effects between groups of end users.
D) a lack of product differentiation in the products sold.
Answer: C
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Why might luxury-goods retailers limit purchases on a good by consumers "due to popular demand"?
A) Because they are worried about running out of supply, leaving some of their customers unhappy that they can't buy the good. B) Because they are trying to use scarcity as a way to improve the brand image of the good. C) Because they are limiting the possibility of arbitrage, where consumers buy in a low price area and resell in a higher price area. D) Because they are worried that they'll run out of the good during the all-important holiday season.
What is the percentage of income received by the upper two quintiles on line L?