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Alexander Osterwalder

“One way multi-sided platforms solve this problem is by subsidizing a Customer Segment. Though a platform operator incurs costs by serving all customer groups, it often decides to lure one segment to the platform with an inexpensive or free Value Proposition in order to subsequently attract users of the platform’s “other side.” One difficulty multi-sided platform operators face is understanding which side to subsidize and how to price correctly to attract customers.”

Alexander Osterwalder, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers
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