Economic catalyst
Encyclopedia
The term economic catalyst is widely used in the field of economy
to describe entrepreneur
s or companies who precipate a fundamental change in business or technology. A more precise definition of catalyst is based on the new economics of multi-sided platforms. In this literature an "economic catalyst" is an entity that has (a) two or more groups of customers; (b) who need each other in some way; but (c) can't capture the value from their mutual attraction on their own; and (d) rely on the catalyst to facilitate value-reaction reactions between them. For-profit businesses, joint ventures, cooperatives, standard-setting bodies, and governments operate catalysts.
The payment card
industry illustrates the concept. Diners Club
was the first modern payment card, introduced in 1950. To create this product Diners Club had to get two groups of customers on board. Consumers who wanted to pay with a card and merchants who wanted to accept payment with this card. These two groups of customers each wanted the card to consummate transactions between them. Any type of dating environment also exemplifies economic catalyst. A nightclub needs men and women and facilitates their meeting and interacting.
Catalysts are the businesses at the heart of the new economics of two-sided markets
. They are multi-sided platforms.
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
to describe entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
s or companies who precipate a fundamental change in business or technology. A more precise definition of catalyst is based on the new economics of multi-sided platforms. In this literature an "economic catalyst" is an entity that has (a) two or more groups of customers; (b) who need each other in some way; but (c) can't capture the value from their mutual attraction on their own; and (d) rely on the catalyst to facilitate value-reaction reactions between them. For-profit businesses, joint ventures, cooperatives, standard-setting bodies, and governments operate catalysts.
The payment card
Payment card
The term payment card covers a range of different cards that can be presented by a cardholder to make a payment.-Types:Typically a payment card is backed by an account holding funds belonging to the cardholder, or offering credit to the cardholder. Payment cards can be classified into types...
industry illustrates the concept. Diners Club
Diners Club
Diners Club International, founded as Diners Club, is a charge card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Matty Simmons...
was the first modern payment card, introduced in 1950. To create this product Diners Club had to get two groups of customers on board. Consumers who wanted to pay with a card and merchants who wanted to accept payment with this card. These two groups of customers each wanted the card to consummate transactions between them. Any type of dating environment also exemplifies economic catalyst. A nightclub needs men and women and facilitates their meeting and interacting.
Catalysts are the businesses at the heart of the new economics of two-sided markets
Two-sided markets
Two-sided markets, also called two-sided networks, are economic platforms having two distinct user groups that provide each other with network benefits...
. They are multi-sided platforms.