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Platform markets are characterized by the existence of indirect network effects that connect two or more market sides through a platform that internalizes these feedback effects. Conventional instruments of market definitions which consider price levels cannot easily applied in case of two-sided...
Persistent link: https://www.econbiz.de/10011929835
. Depending on the ratio of switching costs to network effects, our model generates convergence to monopoly as well as market … switching costs market sharing is the unique equilibrium and for small switching costs both monopoly and market sharing … equilibria emerge. We also analyze stationary and stable equilibria, where we show that a monopoly outcome is almost inevitable …
Persistent link: https://www.econbiz.de/10005863289