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Management and Economics of Platforms - Coggle Diagram
Management and Economics of Platforms
1. Forms of Markets
One-Sided Markets
Two-Sided Markets
Typology
Market Makers
Match Maker
Audience Makers
Demand Coordinators
Transaction System
Software Platform
Characteristics
Distinct Group of Users (01)
Enabling Interactions
Value and Transaction Costs
Existence of Network Effects (Lecture 02)
Particular Pricing Structure (Lecture 03)
Homing
Single-homing
Multi-homing
Competitive Bottleneck
Hybrid Markets
2. Network Effects and Switching Costs
2.1 Goods
Network Goods
Perceived Value
Network Effects
Direct Network Effect
Indirect Network Effect
Positive Externalitites
Negative Externalities
Pricing
Classic Goods
2.2 Switching Costs
Definition
Composition
Compatibility
Search and Learn Cost
Lock-In
Inertia (State Dependence)
Technological
Quantifying
weights (impact of each variable)
econometric model
Overcoming
Reasons for SC
Brand Loyalty
Heterogeneity
State Dependence
Solutions
Advertising
Switching Costs and Platforms
Lower Switching Costs
Two-Period Model
Ambigous Effect
Impact on Competition
Negative Impact
Less Choice and Innoavtion
Barrier to Entry
Positive Impact
Competitive Effects
3. Pricing Strategies (Two-Sided Markets)
Characteristics of Pricing
Magnitude of cross-group externalities
Chicken and egg problem
asymmetric pricing
Solution
Divide and Conquer Strategy
Three-part Tariff
Fees
Lump sum
transaction base
Agents
singular platform
multiple platforms
Price and Competition
Competitive Bottleneck
Winner-Takes-All
Price Discrimination
First-Degree
Second-Degree
Third-Degree
Willingness to Pay (WTP)
Dynamic Pricing
4. Adoption and Diffusion
Adoption
Late Adopters
Indirect Network Effects
Risk Aversion
WTP
Early Adopters
Diffusion
Extensive Diffusion
Models of Diffusion
Epidemic Model
Probit/Rank Approach
Strategic Approach
Competitive Advantage
macro-level (diffusion)
micro level
strategy
advertising user base
Paper: Tucker and Zhang
5. Complementors
5.1 Characteristics
Conjunction (Service and Complements)
Chicken and Egg problem
5.2 Economic Logic
Indirect Profit Model
No-Revenue Model
Direct Profit
Revenue Model
5.3 Effects
Crowding-Out Effect
Adopters Effect on Comp.
Paper: Rietveld
shift from early to late adopters
decline of units sold (novel components)
gap between best- and worst complementors
5.4 Types of Complementors
First Party Complementor
positive effects
platform competition
solution (chicken and egg problem)
negative effects
less motivation for innovation
loss of revenue for TPC
Integration
No Impact
Substitution Effect
Indirect Positive Spillover
Third Party Complementor
6. Compatibility
6.1 Value Maximization
Openness
Control
6.2 Types of Compatibility
Intra-Generational
Compatibility
Standardization
De Jure Standards
De Facto Standards
Inter-Generational
Generic Strategies
Compatibility
Controlled Migration
Open Migration
Performance
Performance Play
Discontinuity
Technological Discontinuity
Forward Coordination
Sale Dissipating Effect
Sale enhancing effect