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Marketplace Economics: Using Pricing to Shape Behavior and Profitability
In most businesses, pricing is about monetization. In marketplaces, pricing is about control. A marketplace is a coordinated system of buyers and sellers whose behaviors are interdependent. The way you charge each side determines who joins, who stays active, how quickly transactions happen, and whether the platform reaches meaningful scale. Scale is not optional. Without sufficient buyer demand and seller supply, liquidity collapses. Pricing is one of the few levers that dire

Todd Babbitz
Feb 45 min read
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