Abstract
Extant research shows that attracting a higher number and variety of complements to the platform is related to platform’s performance, as more users will be attracted to the platform. However, we do not know whether and how an increasing variety of complements affects individual performance of each complement. Our study addresses this issue in the context of peer-to-peer marketplaces. This type of two- sided platforms exhibits a high level of variety, as they rely on individuals (or providers) to bring their heterogeneous assets to customers. Using data of the monthly revenues of the total population of Airbnb listings in Spain during the period October 2014-October 2019-almost fourteen million observations, we analyze the effect of listings’ variety on listings’ revenues and the moderating role of the number of listings active on Airbnb. Our results show that there is an inverted U-shaped relationship between the listings’ variety and the listings’ monthly revenue. This relationship is accentuated when the platform’s size is larger.
Published Version
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