Showing 1 - 7 of 7
We analyze how network effects affect competition in the nascent cryptocurrency market. We do so by examining early dynamics of exchange rates among different cryptocurrencies. While Bitcoin eventually dominates this market, our data suggest no evidence of a winner-take-all effect early in the...
Persistent link: https://www.econbiz.de/10012984073
This paper considers platform competition in a two-sided market that includes buyers and sellers. One of the platforms … benefits from a favorable coordination bias in the market, in that for this platform it is less costly than for the other … platform to convince customers that the two sides will coordinate on joining it. We find that the degree of the coordination …
Persistent link: https://www.econbiz.de/10014164585
platform, leading to the implication that a platform can maximize its total profits by subsidizing one of its sides. We show … fill this gap by developing a model for platform competition in a differentiated setting (a Hoteling line), which is … that when both sides in a platform market multi-home, the strategic interdependence between the two sides of the same …
Persistent link: https://www.econbiz.de/10012840538
We consider dynamic competition among platforms in a market with network externalities. A platform that dominated the … the focal platform whenever such equilibrium exists. Yet when faced with higher-quality competition, can a low …-quality platform remain focal? In the finite-horizon case, the unique equilibrium is efficient for “patient” platforms; with an …
Persistent link: https://www.econbiz.de/10012905193
We consider a methodology for studying how beliefs shape platform competition, based on the notion of a partial … focality. The concept of focality is useful for modeling platform competition when the presence of network effects results in …-quality platform to win the market. Yet, dynamic considerations may have positive or negative effect on this ability …
Persistent link: https://www.econbiz.de/10012896384
We consider dynamic competition among platforms in a market with network externalities. A platform that dominated the … the focal platform whenever such equilibrium exists. Yet when faced with higher-quality competition, can a low …-quality platform remain focal? In the finite-horizon case, the unique equilibrium is efficient for “patient” platforms; with an …
Persistent link: https://www.econbiz.de/10012993108
platform, leading to the implication that a platform can maximize its total profits by subsidizing one of its sides. We show … fill this gap by developing a model for platform competition in a differentiated setting (a Hoteling line), which is … that when both sides in a platform market multi-home, the strategic interdependence between the two sides of the same …
Persistent link: https://www.econbiz.de/10012847352