A theory of two-zoned networks for platform-mediated markets

Ziru Li, Benjamin Shao

Research output: Chapter in Book/Report/Conference proceedingConference contribution


Two-sided networks are a critical component in the present digital economy powered by the advances of information technology. Researchers have investigated the economic and strategic implications from this emerging platform-mediated market structure. While many interesting questions have been studied both theoretically and practically, we observe some real-world cases that cannot be fully explained by the traditional framework. A more comprehensive framework is thus needed to reflect the broader market structure and the underlying market dynamics. We propose the framework of two-zoned networks by adding the "zone" dimension at a higher layer to study two-zoned networks which include two-sided networks as a special case. The core platform serves both as the connection of two-sided markets and as the nexus of the two zones. Four real-world cases are then analyzed using this proposed framework to draw implications before topics are identified for future research.

Original languageEnglish (US)
Title of host publicationAMCIS 2016: Surfing the IT Innovation Wave - 22nd Americas Conference on Information Systems
PublisherAssociation for Information Systems
StatePublished - 2016
Event22nd Americas Conference on Information Systems: Surfing the IT Innovation Wave, AMCIS 2016 - San Diego, United States
Duration: Aug 11 2016Aug 14 2016


Other22nd Americas Conference on Information Systems: Surfing the IT Innovation Wave, AMCIS 2016
Country/TerritoryUnited States
CitySan Diego


  • Network effects
  • Platform-mediated networks
  • Tow-sided markets
  • Two-zoned networks
  • Zone parallelism

ASJC Scopus subject areas

  • Computer Science Applications
  • Computer Networks and Communications
  • Information Systems


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