TSMO 2024: Two-sided Marketplace Optimization

Mihajlo Grbovic, Vladan Radosavljevic, Minmin Chen, Katerina Iliakopoulou-Zanos, Thanasis Noulas, Amit Goyal, Fabrizio Silvestri

Abstract: In recent years, two-sided marketplaces have emerged as viable business models in many real-world applications. In particular, we have moved from the social network paradigm to a network with two distinct types of participants representing the supply and demand of a specific good. Examples of industries include but are not limited to accommodation (Airbnb, Booking.com), video content (YouTube, Instagram, TikTok), ridesharing (Uber, Lyft), online shops (Etsy, Ebay, Facebook Marketplace), music (Spotify, Amazon), app stores (Apple App Store, Google App Store) or job sites (LinkedIn). The traditional research in most of these industries focused on satisfying the demand. OTAs would sell hotel accommodation, TV networks would broadcast their own content, or taxi companies would own their own vehicle fleet. In modern examples like Airbnb, YouTube, Instagram, or Uber, the platforms operate by outsourcing the service they provide to their users, whether they are hosts, content creators or drivers, and have to develop their models considering their needs and goals.