Exploring Impact of Govenment Intervention on Growth in a Multisided Platform: A comparative case study on Copenhagen Airport and Zvartnots Airport

Tatevik Revazian

Student thesis: Master thesis

Abstract

Every day we are surrounded by multisided platforms; when chatting with friends over Facebook, buying a book at Amazon, booking a room using Airbnb, and paying for our daily activities using our Visa cards. Although these successful companies sell different products, they have one important thing in common: They create value by enabling interactions between two or more customer groups. Furthermore, since successful multisided platforms have strong network effects, they tend to grow and tip towards a single dominant platform creating high barriers for entry, thus motivating an increasing number of policy makers to intervene. This is where the heart of this study lies: Exploring impact of government intervention on growth in multisided platforms. The research is based on a comparative case study assessing airports as multisided platforms. Since airports operate in a highly regulated industry, they serve as a prominent example for government intervention and growth. This study proposes three growth factors that impact growth in multisided platforms: I) Government involvement in operations; II) Government control in market access; and III) Government investment efforts. Where the two first growth factors display negative impact on growth when governments intervene, growth factor three reveals positive impact on growth. The purpose of this study is to inspire the development of an economic model where the discovered growth factors can be tested and thus complement the limited literature on the topic. Key words: Multisided platforms; government intervention; airports; aviation industry.

EducationsMSc in Management of Innovation and Business Development, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages111