Suppose you lead an online platform (e.g., MediBid) to link patients with hospitals. Your market research suggests the demand for your service from the two groups follows: Qt = Dt (Pt) + ent Dh (Pn) Qh= Dh (Pn) + eth Dt (Pt) Dt (pt) = 100 -0.25pt Dh (ph) 1000.15ph where Qh represents the demand for your service by hospitals and Qt the demand for your service by patients. Parameters ent and eth measure inter-market externalities - how the demand for the service on one side of the platform affects the demand for the service on the other side. Di and Dh represent the demand for the two customer groups if there were no internetwork externalities among the two groups. For simplicity assume zero fixed costs and zero marginal cost. a. Assuming ent and eth are equal to 0.5, determine the optimal price for the service in each market. [8 marks] b. Demonstrate whether it can ever be optimal for the platform to offer its services to patients for free. How much will you charge hospitals for accessing the service? Draw general lessons from the analysis to guide pricing decisions of multi-sided platforms. [8 marks] c. Suppose hospitals are keen to access patient data you collect. Do patients own their data? Should the platform pay the patients for their data? [6 marks] d. Explain why traditional approaches to privacy that require consent for collecting personal data may not deal with the risks that big data, machine learning and Al technologies pose for individual privacy (hint: learning about an individual may not require personal data). [8 marks]