07/05/2025 - 12:50 - CORE C.035 
> "Platform Diversification". 

Sumit Shrivastav (CORE) 

will give a presentation on : 

Platform Diversification. 

Abstract : 

Recent trends show that many two-sided platforms are diversifying into additional businesses. This raises an important question: how does a platform’s diversification affect its existing market? We examine a framework in which a platform that diversifies must allocate its limited resources on one side of the market—specifically,  sellers—across its two businesses. In doing so, both the diversifying platform and its competitor behave as constrained monopolists on the seller side. We analyze how diversification influences platform pricing, relative profitability, and overall welfare. Our findings offer insights into the strategic and welfare implications of platform diversification in two-sided markets.