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  • July 2021
  • Article

Information Transparency, Multihoming, and Platform Competition: A Natural Experiment in the Daily Deals Market
By: Hui Li and Feng Zhu
Platform competition is shaped by the likelihood of multi-homing (i.e., complementors or consumers adopt more than one platform). To take advantage of multi-homing, platform firms often attempt to motivate their rivals’ high-performing complementors to adopt their own...  View Details
Keywords: Platform Competition; Multi-homing; Information Transparency; Daily Deals; Groupon; LivingSocial; Market Platforms; Information; Competition
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  • April 2021
  • Article

Homing and Platform Responses to Entry: Historical Evidence from the U.S. Newspaper Industry
By: K. Francis Park, Robert Seamans and Feng Zhu
We examine how heterogeneity in customers’ tendencies to single-home or multi-home affects a platform’s competitive responses to new entrants in the market. We first develop a formal model to generate predictions about how a platform will respond. We then empirically...  View Details
Keywords: Single-homing; Multi-homing; Platform Responses; Newpaper; Television; Market Platforms; Market Entry and Exit; Newspapers; Television Entertainment; History; Journalism and News Industry; Media and Broadcasting Industry
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  • 2021
  • Working Paper

Exclusive Dealing and Entry by Competing Two-Sided Platforms
By: Cristian Chica, Kenneth Chuk and Jorge Tamayo
We study competition between horizontally differentiated platforms offering exclusive and non-exclusive contracts to one side of the market (content providers). The introduction of non-exclusive contracts in addition to exclusive contracts softens the competition for...  View Details
Keywords: Two-Sided Markets; Platform Price Competition; Network Externalities; Exclusive Contracts; Multi-homing; Two-Sided Platforms; Price; Competition; Contracts
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  • May 2019
  • Technical Note

Nascent Platform Strategy: Overcoming the Chicken-or-Egg Dilemma
By: Andy Wu, David R. Clough and Sasha Kaletsky
This note provides a framework for addressing the classic chicken-or-egg dilemma facing entrepreneurs launching nascent multi-sided platforms. There are several conditions that lead to a difficult chicken-or-egg problem: strong network effects, high multi-homing costs,...  View Details
Keywords: Multi-Sided Platforms; Strategy; Entrepreneurship; Market Entry and Exit; Problems and Challenges; Competitive Advantage
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  • 2019
  • Chapter

Network Effects
By: Andrei Hagiu and David B. Yoffie
Network effects are a key economic and strategic phenomenon in 'new economy' industries. They can, but do not necessarily, lead to market tipping, unless they outweigh customers' benefits from differentiation and are accompanied by high switching and multi-homing...  View Details
Keywords: Network Effects
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