Looking Beyond Membership: A Simulation Study of Market-entry Strategies for Two-sided Platforms under Competition

Abstract

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Measuring network effects of digital industrial platforms: towards a balanced platform performance management

“…Similarly, Song et al (2018) consider the specificity of software development and illustrate that developers value platforms with a larger user base, while users value platforms with a larger variety of complements, which potentially create added value through more useful complements. With that in mind, the effects of such characteristics as reputation, unique capabilities, the ability to close structural holes, the centrality of complementors, and their distinctive capabilities or knowledge are reported to influence the network effects (Afuah 2013;Däs et al 2017;Tang et al 2020;Haurand 2022). This benefit-creating composition of the network is subsequently referred to as ecosystem utility and should be considered to develop measures of same-side and cross-side network effects.…”