The digital market competition with multisided markets: a case of Indian e-commerce

20 June 2022
IGIR in Law

Digital platforms are one of the key developments in facilitating industry 4.0 and are at the center of the multifold benefits the consumers derived through this. An important feature of the digital platforms is the presence of high sunk costs and low marginal costs (UNCTAD, 2019). This occurs since the major cost of operation is the platform creation and popularizing it among the stakeholders. Algorithms is the key tool through which the major decisions and processing undertaken by these platforms. This involves high investment in the initial stage of operation. Apart from this, successful operation of any platform depends on the efficient marketing and the service delivery to make it popular among customers. Prevalence of high sunk cost and network effects makes high entry barriers to the new players to successfully enter into the market.