Gatekeeping in Anonymous Marketplaces: An Empirical Investigation of Online Black Markets

Abstract

Digital marketplaces are transaction platforms that allow people and organizations to buy, sell, or access a variety of goods and services. A major problem in managing digital marketplaces is gatekeeping, as platforms must be open for trading opportunities while being protected from deviant behavior. In this study, we investigate gatekeeping in the context of Online Black Markets (OBM). OBMs are digital transaction platforms where anonymous buyers and vendors exchange illegal products and services with highly conflicting goals and in the absence of formal rules and regulatory bodies. Building upon the investigation of this extreme case, we conducted mixed-method research to identify gatekeeping mechanisms that influence platform survival. Our findings advance the understanding of platform openness and the growth and survival of digital transaction platforms.

Keywords: openness, gatekeeping, digital platforms, control mechanisms, darknet, crypto markets, survival.

The paper is co - authored with Paolo Spagnoletti (Luiss University) and Andrea Prencipe (Luiss University).