Optimal Commissions and Subscriptions in Networked Markets

Platforms facilitating the exchange of goods and services between individuals are prevalent: one can purchase goods from others on eBay, arrange accommodation through Airbnb, and find temporary projects/workers on online labor markets such as Upwork. The majority of these markets exhibit three key features. First, the platforms do not dictate the transaction prices, i.e., buyers and sellers determine at which price the goods/services will be exchanged. Second, not all buyers or sellers on a platform are compatible. This may be due to taste differences (a buyer may be interested only in the types of goods/services a subset of the sellers offer), geographical or import/export restrictions (e.g., being able to provide services only regionally), or other sources of mismatch (e.g., a mismatch in the desired and available skills in online labor markets). Finally, buyers/sellers are heterogeneous in their valuations for goods or services they receive/provide.