In this paper, we develop an economic rationale for the following stylized fact: Web‐based firms spend profligately on advertising and marketing and usually lose money. Our rationale is based on the winner‐take‐all structure of high fixed cost, low marginal cost, markets for information...

This essay is divided into the following sections: in section 1.1, we brieflyargue that the auto industry is a compelling case for studying regional economicdevelopment and economic geography precisely because it generates large numbersof high-quality jobs, and forges tight linkages to...

Due to network effects and switching costs in platform markets, entrants generally must offer revolutionary functionality. We explore a second entry path that does not rely upon Schumpeterian innovation: platform envelopment. Through envelopment, a provider in one platform market can enter...