Innovation Articles

By Andrei Hagiu and Daniel Spulber

First-Party Content, Commitment and Coordination in Two-Sided Markets


Another collaborative work published in the Harvard Business Review. The authors establish that the interaction between first-party content and two-sided platforms are a delicate mix involving two key factors. These keys are the nature of buyer and seller expectations and the expectations of third party contributors. In fact, the failure of first party developments often brings additional third parties to the table. Establishing a working model with defined boundaries can help all parties arrive at the same guidelines.