Online platforms allow gathering a vast amount of information about consumers’ preferences and characteristics. This information can (i) be used by the platform when selling directly to consumers, and (ii) be sold to those firms adopting the platform for their transactions with consumers. Considering both perspectives, we discuss how finer information at the disposal of the platform and/or the firms impacts the profits and the consumer surplus. We consider both a scenario with a single platform or a single firm (monopoly), and a scenario with several platforms or several firms (oligopoly).
Colombo, S., Economics of Platforms, in Roberto Bocchin, R. B. (ed.), Digital Platforms - From Technical Foundations to Legal and Economic Implications, Springer Nature, Cham, Svizzera 2026: 43- 59. 10.1007/978-3-032-07982-4_4 [https://hdl.handle.net/10807/329699]
Economics of Platforms
Colombo, Stefano
2026
Abstract
Online platforms allow gathering a vast amount of information about consumers’ preferences and characteristics. This information can (i) be used by the platform when selling directly to consumers, and (ii) be sold to those firms adopting the platform for their transactions with consumers. Considering both perspectives, we discuss how finer information at the disposal of the platform and/or the firms impacts the profits and the consumer surplus. We consider both a scenario with a single platform or a single firm (monopoly), and a scenario with several platforms or several firms (oligopoly).
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