Author(s): Matteo Ricci
Platform-based business models have become central to the digital economy, enabling firms to create value by facilitating interactions between multiple user groups. These models leverage network effects, data analytics, and multi-sided market structures to drive growth and innovation. This article explores the economic principles underlying platform businesses, including network externalities, pricing strategies, and competition dynamics. It also examines regulatory, market, and data-related challenges, highlighting implications for strategic decision-making. Understanding these dynamics is critical for firms aiming to build sustainable, scalable, and profitable platform-based businesses.