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two-sided markets

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    Platform Mechanics Entry #0278

    Why free platforms have the most expensive economics

    When the product costs nothing, the cost has not disappeared. It has moved to a currency the user does not track: attention, data and the shape of the feed.

    Novice
    The hidden part #0278

    The product is the audience. A platform that charges nothing has merely moved the price to a currency its users do not audit.

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    Platform Mechanics Entry #0294

    Why platforms prefer creators to institutions

    An individual supplier is cheaper to onboard, easier to replace and cannot negotiate terms. An institution can do all three in reverse.

    Adept
    The hidden part #0294

    A fragmented supply base cannot negotiate. Individuals absorb a rule change as a fact about the world; institutions renegotiate it.

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