Many of the most dynamic public companies, from Alibaba to Facebook
to Visa, and the most valuable start-ups, such as Airbnb and Uber,
are matchmakers that connect one group of customers with another
group of customers. Economists call matchmakers multisided
platforms because they provide physical or virtual platforms for
multiple groups to get together. Dating sites connect people with
potential matches, for example, and ride-sharing apps do the same
for drivers and riders. Although matchmakers have been around for
millennia, they're becoming more and more popular--and
profitable--due to dramatic advances in technology, and a lot of
companies that have managed to crack the code of this business
model have become today's power brokers. Don't let the flashy
successes fool you, though. Starting a matchmaker is one of the
toughest business challenges, and almost everyone who tries to
build one, fails. In Matchmakers, David Evans and Richard
Schmalensee, two economists who were among the first to analyze
multisided platforms and discover their principles, and who've
consulted for some of the most successful platform businesses in
the world, explain how matchmakers work best in practice, why they
do what they do, and how entrepreneurs can improve their chances
for success. Whether you're an entrepreneur, an investor, a
consumer, or an executive, your future will involve more and more
multisided platforms, and Matchmakers--rich with stories from
platform winners and losers--is the one book you'll need in order
to navigate this appealing but confusing world.
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