In markets with network externalities, the technology that gains a critical mass of users will gain market momentum, and further attract users. Despite this predicted self-reinforcing feedback propelled by “excess inertia”, we observe technologies dethroning established systems in several...

We define platform waiting time as the time users spend dealing with/within the platform. Even if users on one side dislike waiting time, platforms have an incentive not to minimize it to get extra revenues from users on the other side. We argue that waiting time for one side tends to increase...

Small firms can vastly benefit from participating in ecosystems – specifically from the shared technological assets and market opportunities offered by the platform. Yet, while aligning to the ecosystem rules, each member must gain and maintain some distinctiveness to capture these benefits....

We analyze the impact of exogenous changes in competition within one side of a two-sided market on the optimal pricing of both sides. We take into account both its impact through indirect network externalities and its impact through higher competition in the marketplace. We find that...