Question

I need help with this economics question. The first question at the top and the for critical thinking question is what i need help with.

Two-Sided Markets, Network Effects, and Oligopoly Why are some platform firms that match people for dates experiencing positive market feedback from reducing the scope for potential matches? Example New Online-Dating Platform Firms Specialize in Limiting the Number of Matches Platform firms that provide matahmaking services in two-sided dating markets have developed a matches. People looking for a date can limit their searches based on age, educational partners. number of specialized techniques through which customers can screen among potential background, ethnicity, hobbies, race, religion, and myriad other characteristics of potential Using such characteristics to limit the matchmaking pool on the other side of the market nonetheless leaves many customers facing a substantial opportunity cost of time spent choosing among a large set of choices. New online-dating platform firms, such as Hinge and Tinder specialize in adding extra screening criteria that narrow the set of potential matches and increase the quality of those matches. For instance, limiting matches to relatively nearby locations is a key method of narrowing the range of other choices. Firms that have added these and methods of screening matches have attracted customers on both sides of the matchmaking market who place considerable value on their time. Thus, these firms have ด้า 6 58 PM

Answer 1

By reducing the scope for potential matches, online dating platforms are making an effort to match people based on their likes and dislikes, by algorithms which match efficiently, they are trying to reduce time and effort where individuals find their perfect match immediately, thus making it lucrative for other individuals to find their perfect match instantaneously.

Individuals with college degrees who earn higher income are already setting high expentations, wherein they want individuals who are as clever as them and who earn in the same range as them. As these individuals are expecting too much and already have too many filters, they might keep on getting the same individuals as they are fewer in number. Moreover tinder has made available premium services as well, which makes your pool lower and higher earning individuals might be seeking premium facility.