Operations via Marketplaces

(3 Credits)

In recent years, a new mode of business operations has emerged: operating via a marketplace. While classical models of operations involved procuring and deploying capacity, several of the most successful companies in recent years have instead created private marketplaces where they match demand with external agents on the supply side. In this course, we will explore what are the advantages and disadvantages of this business model, as well as study how to design and run such marketplaces. This will include topics such as market equilibration, decentralization, allocation and pricing mechanisms, market thickness, and credibility of mechanisms.