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Cited by 780Digital Platforms and EconomicsBusiness Strategy and InnovationMerger and Competition Analysis

The DOI matches its Crossref record; 80 of the 81 references it cites were found in a registry or an index.

Platform competition: Strategic trade‐offs in platform markets

Cennamo, Carmelo, Santalo, Juan·2013·Strategic Management Journal
DOI 10.1002/smj.2066
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Abstract

Because the literature on platform competition emphasizes the role of network effects, it prescribes rapidly expanding a network of platform users and complementary applications to capture entire markets. We challenge the unconditional logic of a winner‐take‐all ( WTA ) approach by empirically analyzing the dominant strategies used to build and position platform systems in the U.S. video game industry. We show that when platform firms pursue two popular WTA strategies concurrently and with equal intensity (growing the number and variety of applications while also securing a larger fraction of those applications with exclusivity agreements), it diminishes the benefits of each strategy to the point that it lowers platform performance. We also show that a differentiation strategy based on distinctive positioning improves a platform's performance only when a platform system is highly distinctive relative to its rivals. Our results suggest that platform competition is shaped by important strategic trade‐offs and that the WTA approach will not be universally successful . Copyright © 2013 John Wiley & Sons, Ltd.

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Crossref · 10.1002/smj.2066

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80 of 80 references verified0 citation errors · 0 not checkable

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Citations

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Show all 81 references

Research works printed but not linked: 14

  1. Belsley DA, 2004, Regression Diagnostic: Identifying Influential Data and Sources of Collinearity
  2. Brightman J, 2008, The state of game development: how video game developers can stay ahead of the game, BusinessWeek
  3. 10.2307/258631 · DOI
  4. Eisenmann TR, 2007, Winner‐take‐all in networked markets
  5. Feng Z, 2007, Indirect network effects, network quality and the success of a platform. Paper presented at Academy of Management Annual Meeting
  6. Gawer A, 2010, Platforms, Markets and Innovation
  7. Greene WH, 2003, Econometric Analysis
  8. Hayashi F, 2000, Econometrics
  9. 10.2307/258088 · DOI
  10. Megerian C, 2007, Console makers: move it or lose it, BusinessWeek
  11. Reimer J, 2005, Cross‐platform game development and the next generation of consoles, Ars Technica
  12. Stennek J, 2007, Exclusive quality: why exclusive distribution may benefit the TV viewers
  13. 10.2307/20159628 · DOI
  14. Wooldridge JM, 2002, Econometric Analysis of Cross Section and Panel Data

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Metadata

Authors
Cennamo, C., & Santalo, J.
Affiliations
  • Bocconi University (IT)
  • Department of Strategy IE Business School Madrid Spain
Corresponding author
Cennamo, Carmelo
ORCID
Cennamo, Carmelo
Venue
Strategic Management Journal
Publisher
Wiley
Published
2013-02-08
Volume
34
Issue
11
Pages
1331-1350
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
DOI
10.1002/smj.2066
OpenAlex
W2120221151
Cited by
780
References
81
Citations by year
2026: 80 · 2025: 92 · 2024: 85 · 2023: 95 · 2022: 90 · 2021: 89 · 2020: 82 · 2019: 57 · 2018: 38 · 2017: 31 · 2016: 15 · 2015: 17 · 2014: 7 · 2013: 2
FWCI
40.27
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
  • Strategic Management Journal (publishedVersion)
  • Archivio istituzionale della Ricerca - Bocconi (submittedVersion)
Funders
Ministerio de Ciencia e Innovación
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
Keywords
platform competition, strategic trade-offs, network effects, exclusivity agreements, platform differentiation, video game industry, platform performance, market capture

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