Cross-Side Network Effects

Cross-side network effects occur when the value of a platform increases for one group of users as more users from a different group join the platform. For example, in a marketplace, more buyers attract more sellers, and vice versa. Each side benefits from the other's growth because a larger user base creates more activity, choices, or opportunities, making the platform more valuable for everyone involved. This interconnected value growth helps the platform thrive, as increasing users on one side makes the platform more attractive to the other side.