Two-Sided Platform Pricing
How this teaches game theory
Two-sided platforms often subsidize one side of a market to attract the other. The best price on each side depends not only on direct willingness to pay but also on cross-side network effects.
Complete scenario, mode, level, and concept guide
Scenarios
Ride-sharing
Side A represents riders and Side B drivers. More drivers attract riders; more riders attract drivers.
Online marketplace
Buyers value seller variety, while sellers value buyer demand.
Creator platform
Viewers attract creators and creator variety attracts viewers.
Modes
Human platform
You choose both prices and observe participation and profit.
Human + recommendation
You remain in control but can ask the computer to search the price grid for a high-profit pair.
Computer pricing
The computer automatically chooses the best pair found by exhaustive grid search.
Levels
Levels control cross-side network effects. Stronger effects make asymmetric pricing and subsidization more valuable.