An Analysis of Search and Authentication Strategies for Online Matching Platforms

Abstract

AboutSectionsView PDF ToolsAdd to favoritesDownload CitationsTrack CitationsPermissionsReprints ShareShare onFacebookTwitterLinked InEmail Go to Section HomeManagement ScienceVol. 65, No. 5 An Analysis of Search and Authentication Strategies for Online Matching PlatformsAmit Basu , Sreekumar Bhaskaran , Rajiv Mukherjee Amit Basu , Sreekumar Bhaskaran , Rajiv Mukherjee Published Online:11 Feb 2019https://doi.org/10.1287/mnsc.2018.3056AbstractCompared to offline matching markets, online matching platforms improve search in the matching process but at the same time increase the problem of authenticating the features and credentials of prospective matches. This paper examines the interplay between these two processes in online matching, using game-theoretic models. We examine whether an online matching platform should target a broad market of match-seekers or an exclusive group of high-value match-seekers, and how the platform should price its search and authentication services. Our results provide valuable insights for online matching platforms regarding the decision to offer authentication services in addition to search services, and guidelines for the pricing and positioning of these services. For instance, we show that the complementarity of the platform’s optimal pricing for search and authentication services can justify the platform’s offering an authentication service as a loss leader, and that higher-quality authentication services may not always justify higher authentication fees. We also develop guidelines for the platform’s optimal strategies for different market conditions.The online appendix is available at https://doi.org/10.1287/mnsc.2018.3056.This paper was accepted by Chris Forman, information systems. Previous Back to Top Next FiguresReferencesRelatedInformationCited byMarketplace Scalability and Strategic Use of Platform InvestmentJin Li, Gary Pisano, Yejia Xu, Feng Zhu9 December 2022 | Management Science, Vol. 0, No. 0Two-Sided Platform Competition in a Sharing EconomyChenglong Zhang, Jianqing Chen, Srinivasan Raghunathan18 April 2022 | Management Science, Vol. 68, No. 12The Secret to Finding a Match: A Field Experiment on Choice Capacity Design in an Online Dating PlatformJaehwuen Jung, Hyungsoo Lim, Dongwon Lee, Chul Kim27 July 2021 | Information Systems Research, Vol. 33, No. 4Price competition and blockchain technology adoption strategies of agents on the digital platform14 October 2022 | Frontiers in Psychology, Vol. 13Digital Platform Modelling: Delineating the Foundations of Their Business Models29 March 2022Profitability vs. Stability: The Choice of Trading Strategies in a Capacity Sharing Supply ChainDiscrete Dynamics in Nature and Society, Vol. 2021Research on value-added service strategy of the third-party platform based on system dynamicsThe Secret to Finding Love: A Field Experiment of Choice Structure in Online Dating PlatformSSRN Electronic Journal, Vol. 113Online Reviews Matter: How Can Platforms Benefit from Online Reviews?8 November 2019 | Sustainability, Vol. 11, No. 22Short-Term Housing Rentals and Corporatization of Platform PricingSSRN Electronic JournalMarketplace Scalability and Strategic Use of Platform InvestmentSSRN Electronic Journal, Vol. 25 Volume 65, Issue 5May 2019Pages 1949-2443 Article Information Supplemental Materials Metrics Information Received:May 23, 2016Accepted:January 20, 2018Published Online:February 11, 2019 Copyright © 2019, INFORMSCite asAmit Basu, Sreekumar Bhaskaran, Rajiv Mukherjee (2019) An Analysis of Search and Authentication Strategies for Online Matching Platforms. Management Science 65(5):2412-2431. https://doi.org/10.1287/mnsc.2018.3056 Keywordsmatchingsearchauthenticationonline marketspricingvertical differentiationPDF download