Advertising or Freemium: The Impacts of Social Effects and Service Quality on Competing Platforms

Volume: 67, Issue: 1, Pages: 220 - 233
Published: Feb 1, 2020
Abstract
We address the impacts of social effects and service quality on business model decisions through a game-theoretic model. These platforms, which integrate social networking services into their services, adopt either an advertising strategy or a freemium strategy. Thus, four strategy combinations that include two strategic substitute cases in which both platforms use either an advertising strategy or a freemium strategy and two strategic...
Paper Details
Title
Advertising or Freemium: The Impacts of Social Effects and Service Quality on Competing Platforms
Published Date
Feb 1, 2020
Volume
67
Issue
1
Pages
220 - 233
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