Higher Market Thickness Reduces Matching Rate in Online Platforms: Evidence from a Quasiexperiment
Abstract
Market thickness is a key parameter that can make or break a platform’s business model. Thicker markets can offer more opportunities for participants to meet and higher chances that a potential match exists. However, they can also be vulnerable to potential search frictions. In this paper, using data from an online peer-to-peer holiday property rental platform, we aim to identify and measure the causal impact of market thickness on matching...
Paper Details
Title
Higher Market Thickness Reduces Matching Rate in Online Platforms: Evidence from a Quasiexperiment
Published Date
Jan 1, 2020
Journal
Volume
66
Issue
1
Pages
271 - 289
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