Designing a Two-Sided Platform: When to Increase Search Costs?

Why do some shopping malls, retail stores, popular magazines, and even Internet portals seem to purposefully make it hard for consumers to find what they want? HBS professor Andrei Hagiu and Bruno Jullien challenge the conventional wisdom that intermediaries create value by reducing search and transaction costs. Their paper sheds light on the economic motivations that in some contexts may lead intermediaries to make it … [ Read more ]