What is a digital platform?

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Digital platforms are particularly prevalent in fragmented markets such as the restaurant and hotel industries. Their business model depends on their ability to build a critical mass of users on both sides of the market (so-called two-sided platforms) and to facilitate transactions between these two sides. Platforms exert a profound influence on markets, although this influence is still not fully understood. On the demand side, they often restrict choices and standardize service descriptions to speed up the purchasing process. On the supply side, they accumulate large amounts of information and benefit from information asymmetries.

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