A model of two-zoned networks for platform-mediated markets: Theory and practical applications

Ziru Li, Benjamin B.M. Shao, Michael Goul

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Two-sided networks enabled by information technology (IT) represent an emerging type of platform-mediated market in the digital economy. Researchers have studied the associated economic and strategic issues from both theoretical and managerial perspectives; however, we have noticed inadequacy in the extant literature when observing some real-world cases that cannot be fully explained by the framework of two-sided networks. A more comprehensive model is needed to explicate the broader market structure and understand the underlying market dynamics. To achieve this aim, we propose a theoretical model of two-zoned networks. In extending the existing dimension of “side,” we add the “zone” dimension at a higher level to study two-zoned networks, which include two-sided networks as a special case. In the proposed model, two-zoned networks consist of two, two-sided networks and a core platform that serves both networks as their connection point at the nexus of two zones. Using the proposed model of two-zoned networks, we analyze four real-world business cases to demonstrate the model's practical applications. Finally, strategic implications of this model, in terms of operational and legal ramifications, are described. We conclude with topics for future research.

Original languageEnglish (US)
Title of host publicationProceedings of the 53rd Annual Hawaii International Conference on System Sciences, HICSS 2020
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages5535-5544
Number of pages10
ISBN (Electronic)9780998133133
StatePublished - 2020
Event53rd Annual Hawaii International Conference on System Sciences, HICSS 2020 - Maui, United States
Duration: Jan 7 2020Jan 10 2020

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2020-January
ISSN (Print)1530-1605

Conference

Conference53rd Annual Hawaii International Conference on System Sciences, HICSS 2020
Country/TerritoryUnited States
CityMaui
Period1/7/201/10/20

ASJC Scopus subject areas

  • Engineering(all)

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