Journal
MANAGEMENT SCIENCE
Volume 57, Issue 11, Pages 1913-1925Publisher
INFORMS
DOI: 10.1287/mnsc.1110.1407
Keywords
platform competition; two-sided markets; monopoly; e-commerce
Funding
- Hong Kong Research Grants Council
- Hong Kong University of Science and Technology
- National Science Foundation
Ask authors/readers for more resources
Platform competition is ubiquitous, yet platform market structure is little understood. Theory models typically suffer from equilibrium multiplicity-platforms might coexist or the market might tip to either platform. We use laboratory experiments to study the outcomes of platform competition. When platforms are primarily vertically differentiated, we find that even when platform coexistence is theoretically possible, markets inevitably tip to the more efficient platform. When platforms are primarily horizontally differentiated, so there is no single efficient platform, we find strong evidence of equilibrium coexistence.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available