We model the influence of network effects on an entrepreneur's decision to pursue an IPO or exit via an asset sale. Our model shows that strong network externalities (in the entrepreneur's product) make an asset sale a more attractive exit strategy. This effect requires that there is a potential...

Congestion is a widespread phenomenon in two-sided markets, but evidence on its costs and benefits is limited. Using data from an online dating platform, we document a large excess demand, or congestion, for some women. By exploiting exogenous variation in the number of men and women using the...