This page links to material I use in my Decision Analysis course, with MSc students at the Department of Business Administration, at University of Namur.
Assignment: Two-sided Marketplace Design
Select an existing non-Internet-based service, which performs the matching of supply and demand on a two-sided market.
Design a system which runs on the Internet and could perform (better?) matching of supply and demand in that market.
Among the data which you collect, it is neccesary to have interview transcripts of at least 2 supply side participants, 2 demand side participants, 2 professional brokers.
The requirements specification needs to include information about each role’s expectations, costs, and benefits at present (as-is), information about each role’s future costs and benefits, when the solution to requirements is in use. The specification needs to describe the differences between as-is and to-be situations.
The solution specification needs to include at least specifications of the following:
– business model of the business which would own and operate the solution,
– how the service is currently delivered (as-is service processes),
– how the service will be delivered via the system (to-be service processes),
– how the software would work for (interact with) its users;
– go to market strategy for the solution.
1. Create a group and select a two-sided market – deadline: lecture 2 – email me your choice, including a short description of the supply and demand, and of why it is a two-sided market;
2. List of interviewees – deadline: lecture 3 – email me the list of interviewees, and for each their first and last name, email and/or phone, and company/organization they work for;
3. Draft requirements specification (both >50% completed) – deadline: lecture 6 (November 8th) – email / share with me the document;
4. Solution concept presentation – at lecture 7 (November 15th) – present draft requirements specification and draft solution specification to the class;
5. Delivery – at last lecture (December 13th) – present final requirements and solution specifications; all interviewees will be invited for the presentations.
Resources to get you started:
– Eisenmann, Thomas, Geoffrey Parker, and Marshall W. Van Alstyne. “Strategies for two-sided markets.” Harvard business review 84.10 (2006): 92. https://wiki.aalto.fi/download/attachments/38374131/van+alstyne+hbr+two-sided+markets.pdf
– Rysman, Marc. “The economics of two-sided markets.” The Journal of Economic Perspectives 23.3 (2009): 125-143. http://accounts.unipg.it/~davide.castellani/teaching/perugia/edi/Rysman_Two-sided_markets_jep.23.3.pdf
– Evans, David S., and Richard Schmalensee. The industrial organization of markets with two-sided platforms. No. w11603. National Bureau of Economic Research, 2005. https://wiki.aalto.fi/download/attachments/38374131/SSRN-id987341.pdf