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Strategies for AI and Cognitive Tools by MIT Sloan Management Review

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What You Need to Know Before Starting a Platform Business

There’s probably never been a better time for platform businesses. But, warn two experienced economists, that doesn’t make them easy to launch successfully.

There’s a great deal of enthusiasm about platform strategies these days. Entrepreneurs pitch their startups as the next Uber, the next Facebook, or the next Airbnb, while executives in established companies are retooling their strategies around platforms to drive growth and compete digitally.

But creating a successful platform business is not easy, as economists Richard Schmalensee and David S. Evans will tell you. Schmalensee and Evans have ...

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