Platform Governance

The set of rules concerning who gets to participate in an ecosystem, how to increase and distribute the value and how to resolve conflicts.

This document was created for a project I am working on as CTO of AIESEC International Inc. and provides guidance to high-level executives of AIESEC in national branches of what Platform Governance means to generate buy-in to the idea of implementing means of control to AIESECs Global Information System. The ideas and concepts presented here are not mine and have all been taken from the book Platform Revolution by Parker and Van Alstyne.

Good Governance creates wealth and fairly distributes it among all those who add value. This is achieved by properly utilizing Tools that are at hand for platform managers.

Bad Governance alienates users with Information Asymmetry, Externalities, Monopoly Power and Risk. These are called Market Failures.

Value: Every action on the platform starts with an exchange of information between users that has value to its participants


Every platform has 3 types of actors interacting with one another. In AIESEC these are:

YOP: Youth, Supply Side

EXPA: AIESEC, Platform Provider

POP: Partners, Demand Side

Each user initiates different types of interactions that can lead to various desired and undesired effects.

Market Failures

Information Asymmetry

Definition: One participant of an interaction knows facts that other parties do not know and uses it for personal advantage.


  • a buyer on eBay buying a product with a misspelling for a cheap price and immediately re-listing it for profit.
  • a seller listing cheap low-quality counterfeit good on Amazon, selling them as the original.


Platform Governance was originally published in Laurins Page on Medium, where people are continuing the conversation by highlighting and responding to this story.

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