Congratulations to Andras Niedermayer, who has been awarded a 48-month research grant of €210,000 for his project on the design of digital platform markets.

A defining feature of many platform markets is the coexistence of thick markets, where many participants generate numerous potential matches, and thin markets, where limited participation can lead to waiting times, congestion, and inefficient allocation of scarce supply. The project studies a central question for platform design: how should supply be allocated across markets with different levels of thickness?

While prices are traditionally viewed as the main mechanism for coordinating supply and demand, digital platforms increasingly rely on algorithmic allocation tools, such as rankings and the selective display of offers, to influence matching. Combining theoretical and empirical analysis, the project will study how these instruments can be designed to improve matching and sustain efficient outcomes, particularly in thin markets.

The grant will support the project over the next four years.