Platforms that claim neutrality actually set the market rules

Evidence

Finally, platforms are also designed in a way that makes them attractive to its varied users. While often presenting themselves as empty spaces for others to interact on, they in fact embody a politics. The rules of product and service development, as well as marketplace interactions, are set by the platform owner. Uber, despite presenting itself as an empty vessel for market forces, shapes the appearance of a market. It predicts where the demand for drivers will be and raises surge prices in advance of actual demand, while also creating phantom cabs to give an illusion of greater supply. In their position as an intermediary, platforms gain not only access to more data but also control and governance over the rules of the game. — Nick Srnicek, Platform Capitalism, 49

Categorization

  • SEED: The Uber phantom-cabs example — a firm manufacturing an illusion of supply to shape its own market — is a sharp, citable anecdote for any essay on performed markets or manufactured scarcity.
  • XREF: Platforms-as-neutral-vessels performing a market echoes Srnicek’s anti-Zuboff framing: the extraction is embedded in the designed architecture itself, not a post-hoc appropriation of behavior surplus. — connects to: Platforms look like markets but are centralized fiefs owned by algorithms — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 868; Platform algorithms mediate and restrict what buyers and sellers can see and do. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 923; News values are value-loaded systems presented as neutral technical protocols — Hall, Stuart, Essential Essays, Volume 1, 872 (+2 more)

Broader Connections