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Raji Srinivasan and Nandini Ramani

Digital multisided platforms (DMP), which create value by connecting diverse individuals seeking exchange, are disrupting several industries. DMP offer a rich source of market opportunities for some firms (including the owner of the platform) and threats for other firms (incumbents operating in the space). DMP have several distinct features such as the motivations of users and the business model that are different from traditional value chains and non-digital multisided platforms. The central thesis of this chapter is that these distinctive features of DMP have substantial implications not only for companies operating them, but also for companies outside the platform (e.g., marketers interested in reaching users of the platform) and companies outside the industry boundaries of the digital multisided platform (e.g., traditional brick-and-mortar industries such as hotels and taxi cab businesses affected by DMP). In this chapter, the authors discuss three types of DMP, outline key aspects of DMP, describe their effects on business practice, and identify key questions for future research.