Platform Economy

An economic system organised around digital platforms that mediate transactions between producers and consumers. Unlike traditional firms, platforms do not own the means of production; they own the infrastructure that connects supply and demand (e.g., Uber owns no cars, Airbnb no properties). The platform economy is characterised by network effects, data extraction, algorithmic management, and the classification of workers as independent contractors. It generates wealth for platform owners while shifting risks and costs onto users and labour.

Example: “She drove for three platforms, rented her apartment on a fourth, and bought groceries through a fifth—the platform economy had replaced the old economy of employers and employees with a patchwork of digital middlemen.”

Platform Market

The specific marketplace created and controlled by a digital platform, where buyers and sellers meet under rules set by the platform’s algorithm. Unlike open markets, platform markets are centrally managed—prices can be algorithmically adjusted, participants can be deplatformed, and visibility is determined by proprietary ranking systems. Platform markets often appear competitive but are actually monopolistic, as the platform owns the access to customers and the data that enables trade.

Example: “He sold handmade crafts on a platform market that kept changing its fee structure; he had no alternative because the platform owned the customers.”

Platform Economy by Abzugal Nammugal Enkigal April 21, 2026