Latest / The Platform Economy with Fexingo: Marketplaces, Networks, and Multi-Sided Businesses
How Marketplaces Capture Value Through Pricing Power
Marketplaces like Uber and Airbnb don't just take a cut of transactions; they actively manage price elasticity to maximize surplus capture. This episode explores how dynamic pricing algorithms shift risk from platforms to users, using specific data on price dispersion and consumer acceptance thresholds. We look at the economic mechanics behind why you pay more for identical services during peak hours and how this strategy impacts long-term user retention versus short-term margin expansion.
#PricingPower #MarketplaceEconomics #DynamicPricing #PriceElasticity #Uber #Airbnb…
The skinny
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