From Amazon and Apple Store to Airbnb and Uber, our day-to-day life is surrounded by marketplaces. In this class, we will analyze the economics and strategy of marketplaces. We will consider the forces that have led to the proliferation of these marketplaces, as well as the strategic choices that determine which ones succeed. We will also study the strategy of managing these marketplaces: how should matching work, how marketplace design can solve problems of congestion or market thinness, how to discover prices through auctions, and how to get feedback and design a well-functioning rating system. We will also talk about trust and safety as a key pillar of successful marketplaces. We will also learn how to design non-monetary markets that solve big social problems, such as kidney exchange, food banks, public housing, and school choice. Finally, we will discuss the regulatory challenges of these marketplaces, especially with regard to labor income and platform's monopoly power. Applications include online stores; ride-sharing and transportation; advertising and sponsored search; room-sharing and vacation rentals; creator/passion economy; B2B marketplaces; dating; and labor markets. The class will be in lecture format and will feature several guest speakers, from founders, to investors, to Nobel laureates of market design.
3 units · GSB Letter Graded
From Amazon and Apple Store to Airbnb and Uber, our day-to-day life is surrounded by marketplaces. In this class, we will analyze the economics and strategy of marketplaces. We will consider the forces that have led to the proliferation of these marketplaces, as well as the strategic choices that determine which ones succeed. We will also study the strategy of managing these marketplaces: how should matching work, how marketplace design can solve problems of congestion or market thinness, how to discover prices through auctions, and how to get feedback and design a well-functioning rating system. We will also talk about trust and safety as a key pillar of successful marketplaces. We will also learn how to design non-monetary markets that solve big social problems, such as kidney exchange, food banks, public housing, and school choice. Finally, we will discuss the regulatory challenges of these marketplaces, especially with regard to labor income and platform's monopoly power. Applications include online stores; ride-sharing and transportation; advertising and sponsored search; room-sharing and vacation rentals; creator/passion economy; B2B marketplaces; dating; and labor markets. The class will be in lecture format and will feature several guest speakers, from founders, to investors, to Nobel laureates of market design.
Offered in Spring 2026 at Stanford University.