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The Secret To Making Matches in Two-Sided Markets

Matching platforms such as dating apps, AirBnB and Uber connect two groups of users with common interests. In the example of dating platforms, the number of candidates users can view and select on matching platforms, also known as choice capacity, can influence how people use these apps. Using a South Korean dating app, Jaehwuen Jung analyzed what happens when choice capacity changes. 

Interestingly, Jung finds that high choice capacity doesn’t lead to higher engagement or matches. Engagement is measured by how many choices users make, while matches measures how often users on either side mutually select one another. In this case, increasing the choice capacity of men resulted in more user engagement, but increasing the choice capacity of women resulted in more matches.

The results point to multiple mechanisms working at the same time. While increasing the choice capacity of one side increases engagement on that side, it also decreases engagement on the other side.