The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Digital Marketplaces

  • Andrey Fradkin
Reference work entry


Digital marketplaces represent a new and important organizational form in the economy. Since their emergence in the mid 1990’s, they have transformed many industries including accommodation, retail, and transportation. I start this entry by outlining the ways in which digital marketplaces differ from traditional firms. I then discuss three research areas relating to digital marketplaces. The first research area concerns the determinants of marketplace diffusion and its effects. The second concerns the economics of digital market design, with an emphasis on search and matching, pricing, and trust and safety mechanisms. The last research area is about policy issues prompted by digital marketplaces. I conclude by discussing new research topics relating to emerging technologies and continued marketplace growth.


Industrial organization Digital marketplaces Peer-to-peer markets Search and matching Market design Marketplace design Digitization Structural change Sharing economy Reputation systems 

JEL Classification

J2 J4 L1 L15 L2 L5 L86 M13 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  1. 1.MIT Sloan School of ManagementCambridgeUSA

Section editors and affiliations

  • Catherine Tucker

There are no affiliations available