Balancing Variety and Quality: Examining the Impact of Benefit-Linked Cross-Subsidization on Multisided Platforms

This study explores the trade-off multisided platforms face between expanding complementor participation and ensuring high-quality offerings. Using airport industry data, it shows that a cross-subsidizing pricing strategy—linking subsidies to complementors’ revenue—can enhance financial performance while maintaining service quality, balancing variety and quality in multisided platform ecosystems.