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Chapter 26: Q. 12 - Problems (page 598)

Consider the following list, and classify each item according to the appropriate type of two-sided market-audience-making, matchmaking, shared input, or transaction-based-and write a one sentence answer justifying your classification. (Hint: You may wish to check out the firms' Web sites to assist in answering this question.)

a. Realtor.com

b. NYTimes.com

c. Linux.com

d. Paypal.com

Short Answer

Expert verified

(a)Connect real estate buyers and sellers.

(b) Use messages to connect key figures to your audience.

(c) A general input market because it acts as a platform for connecting different people.

(d) When it comes to the transaction platform, it becomes atransaction-based market.

Step by step solution

01

Given information 

The given sentences are :

An making market refers to a two-sided market in which the platform brings together

02

Explanation 

The audience creation market is atwo-way marketwhere the platform connects advertisers andviewers by providing some form of entertainment.The Matchmaking Market is atwo-sided marketwhere the platformhelps oneuser identify the otheruser whomatches their needs. Atypical input market is adouble-sided marketwhere producersneed to get the required inputs from the platform in order to access the other side of the market.The transaction-based market is atwo-way marketwhere the platform provides users with transaction clearing services.

03

Given information  

That are given sentences are : (a).

Realtor.com

04

Step 4:Explanation (a)

a)

Realtor.com is a matchmaking market that connects real estate buyers and sellers.

05

Given information 

That are given sentences are : (b)

NYTimes.com

06

Explanation (b)

b.

NYTimes.com is an audience-creating market because it connects the primary person to the audience through news.

07

Given information 

That are given sentences are: (c)

Linux.com

08

Explanation (c)

c.

Linux.com is a shared input market because it serves as a platform to connect different people by providing them with information on what they are looking for.

09

Given information 

That are given sentences are : (d)

Paypal.com

10

Explanation (d)

d.

Paypal.com is a transaction-based market because it serves as a transaction platform for both buyers and sellers.

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