Entry into Platform-Based Markets

Published: Feb 27, 2009
Abstract
This paper seeks to understand when an entrant with superior quality can successfully enter a platform-based market. We analyze a model where an entrant platform with superior quality competes with an incumbent platform. We find that the entrant's success depends critically on the strength of indirect network effects and the consumers' discount factor of future applications. Contrary to the popular belief that an entrant's quality advantage...
Paper Details
Title
Entry into Platform-Based Markets
Published Date
Feb 27, 2009
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