In a Two-Sided Market with Network Effects, the Platform Will

question 223

Multiple Choice

In a two-sided market with network effects, the platform will likely

• A) charge a lower price for end users that are more affected by a positive market feedback.
• B) charge a higher price for end users that are more affected by a positive market feedback.
• C) charge a zero price for all end users regardless of the market feedback effects.
• D) randomly charge end users.

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Definitions:

Keiretsu

A network of interlinked Japanese companies, often bound by cross-shareholdings, collaborating closely for mutual benefit.

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing that signals the need to move materials within a production facility or to move materials from an outside supplier into the production facility.

Meishi

The Japanese term for business cards, which play a significant role in business and social etiquette in Japan.

Zaibatsu

A large Japanese business conglomerate, typically family-owned, existing before World War II and involved in multiple industries.