{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,8,2]],"date-time":"2025-08-02T17:25:25Z","timestamp":1754155525161,"version":"3.41.2"},"reference-count":18,"publisher":"Emerald","issue":"5","license":[{"start":{"date-parts":[[2017,5,2]],"date-time":"2017-05-02T00:00:00Z","timestamp":1493683200000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["K"],"published-print":{"date-parts":[[2017,5,2]]},"abstract":"<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Purpose<\/jats:title>\n<jats:p>This paper aims to investigate the investment strategy of a two-sided platform on reducing transaction costs of two user sides and to study the pricing problem of the platform.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Design\/methodology\/approach<\/jats:title>\n<jats:p>Mathematical derivation is used to compute the optimal decisions of a two-sided platform on pricing and investment. Numerical analysis is used to illustrate the findings.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Findings<\/jats:title>\n<jats:p>It is found that the demand of one user side decreases in the maximal transaction costs reduction to this side but increases in the maximal transaction costs reduction to the other side. It is also found that a platform should never choose the investment in such a way that the maximal transaction costs reductions of two user sides are the same.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Research limitations\/implications<\/jats:title>\n<jats:p>Several limitations exist in this paper, most of which exist due to the assumptions. These limitations could be good research directions in the future. For example, only one platform\u2019s decision is considered, and platforms\u2019 competition is not taken into account. Considering other platforms\u2019 competition, the decisions of the users and the platform would be different.<\/jats:p>\n<\/jats:sec>\n<jats:sec>\n<jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title>\n<jats:p>From the transaction costs perspective, this paper finds that a platform should never choose the investment in such a way that the maximal transaction costs reductions of two user sides are the same. 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