Platform competition: Strategic trade‐offs in platform markets
Abstract
Because the literature on platform competition emphasizes the role of network effects, it prescribes rapidly expanding a network of platform users and complementary applications to capture entire markets. We challenge the unconditional logic of a winner‐take‐all ( WTA ) approach by empirically analyzing the dominant strategies used to build and position platform systems in the U.S. video game industry. We show that when platform firms pursue two...
Paper Details
Title
Platform competition: Strategic trade‐offs in platform markets
Published Date
Feb 8, 2013
Journal
Volume
34
Issue
11
Pages
1331 - 1350
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