Disintermediation in platform markets refers to what?

Disintermediation in platform markets refers to what?

• A. Eliminating intermediaries in the value chain
• B. Increasing the number of middlemen
• C. Centralizing control with a single vendor
• D. Outsourcing customer support

Answer: (A)

Disintermediation in platform markets is about removing intermediaries in the value chain so the platform connects producers and customers directly. In traditional models, brokers, distributors, or retailers sit between the creator and the end user, adding cost and delays. A platform market changes that by providing the marketplace, trust mechanisms, payment, and logistics, enabling direct interactions between buyer and seller and often reducing friction and prices. That direct, intermediary-free link is what disintermediation describes. The other options describe actions that increase middlemen, concentrate control, or outsource support, none of which capture removing layers between producers and consumers.

Disintermediation in platform markets is about removing intermediaries in the value chain so the platform connects producers and customers directly. In traditional models, brokers, distributors, or retailers sit between the creator and the end user, adding cost and delays. A platform market changes that by providing the marketplace, trust mechanisms, payment, and logistics, enabling direct interactions between buyer and seller and often reducing friction and prices. That direct, intermediary-free link is what disintermediation describes. The other options describe actions that increase middlemen, concentrate control, or outsource support, none of which capture removing layers between producers and consumers.