Platform design biases in ad-funded two-sided markets.¶
Choi, J. P., & Jeon, D. (2023). Platform design biases in ad-funded two-sided markets. The RAND Journal of Economics, 54(2), 240-267.
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Primes¶
- Severed Accountability Via Unearned Revenue
- The contrast case proves the geometry: a subscriber-funded platform, paid directly by users, has the coupling intact and optimizes for user satisfaction.
This sourceShows that whether a platform is funded by advertisers or able to charge users directly systematically biases its design choices toward the paying side — the formal contrast between advertiser-funded platforms (serving advertisers) and subscriber-funded ones (serving users).
- The contrast case proves the geometry: a subscriber-funded platform, paid directly by users, has the coupling intact and optimizes for user satisfaction.
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