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Intro
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Motivation
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Key questions
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or is the "blitzscaling" buzz justified?
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Literature
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Output model
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Uber napkin diagram
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Prices and buyer/seller surplus
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Growth model
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The platform
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Market size and balance reformulation
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Faster growth vs. slower growth
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Infinite horizon problem (reformulated)
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Examples of growth path constraints X
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Optimal balance
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Driving forces
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Increasing returns to scale market
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Stationary solution
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Optimal growth policy
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Optimal policy increasing returns (a 1)
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Optimal policy decreasing returns (a 1)
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Numerical example (a 1)
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Matching function
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Summary
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Work-in-progress: Oligopoly growth
Description:
Explore the dynamics of optimal growth in two-sided markets through this 52-minute lecture by Garret Van Ryzin from Cornell Tech. Delve into platform markets, examining key questions surrounding the "blitzscaling" phenomenon and its justification. Analyze the output model, including Uber's napkin diagram, pricing strategies, and buyer/seller surplus. Investigate the growth model, market size, and balance reformulation, comparing faster and slower growth scenarios. Examine the infinite horizon problem, growth path constraints, and optimal balance. Discover driving forces in increasing returns to scale markets, stationary solutions, and optimal growth policies for both increasing and decreasing returns. Conclude with a numerical example, matching function analysis, and a brief look at work-in-progress on oligopoly growth in platform markets.

Optimal Growth in Two-Sided Markets

Simons Institute
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