Marketplaces
What constitutes a fair exchange of value between two parties?
The Exchange
| Question | Why It Matters |
|---|---|
| What qualities are valued most? | Product-market fit |
| Why are they valued? | Underlying needs |
| Who has strongest demand? | Target customer |
| What drives demand? | Market dynamics |
| What price will they pay? | Pricing power |
| How do you build it? | Execution |
Buyer Perspective
What shapes the buyer's perception of value?
| Factor | Description |
|---|---|
| Cost | Price relative to alternatives |
| Simplicity | Ease of purchase and use |
| Speed | Time to value |
| Utility | Functional benefit |
| Capacity | Scale of solution |
| Social Signalling | Status and identity |
Seller Perspective
What shapes the seller's economics?
| Factor | Description |
|---|---|
| Effort vs Reward | Unit economics |
| Pricing Power | Ability to raise prices |
| Virality | Organic growth |
| Stickiness | Retention and switching costs |
| Cost of Supply | Margin structure |
Context
- Economics — The money system
- Microeconomics — Individual choices
- Business Cycle — Market timing