CoChat
Sign Up
Cited by 326Digital Platforms and EconomicsInnovation Diffusion and ForecastingSupply Chain and Inventory Management

The DOI matches its Crossref record; 59 of the 60 references it cites were found in a registry or an index.

Platform Performance Investment in the Presence of Network Externalities

Open access
Anderson, Edward G., Parker, Geoffrey G., Tan, Burcu·2014·Information Systems Research
DOI 10.1287/isre.2013.0505
Open this paper in CoChat — free account

Abstract

Managers of emerging platforms must decide what level of platform performance to invest in at each product development cycle in markets that exhibit two-sided network externalities. High performance is a selling point for consumers, but in many cases it requires developers to make large investments to participate. Abstracting from an example drawn from the video game industry, we build a strategic model to investigate the trade-off between investing in high platform performance versus reducing investment in order to facilitate third party content development. We carry out a full analysis of three distinct settings: monopoly, price-setting duopoly, and price-taking duopoly. We provide insights on the optimum investment in platform performance and demonstrate how conventional wisdom about product development may be misleading in the presence of strong cross-network externalities. In particular, we show that, contrary to the conventional wisdom about “winner-take-all” markets, heavily investing in the core performance of a platform does not always yield a competitive edge. We characterize the conditions under which offering a platform with lower performance but greater availability of content can be a winning strategy.

Overview

Integrity signals

Registry

Crossref · 10.1287/isre.2013.0505

Cites

59 of 59 references verified0 citation errors · 0 not checkable

Statistics

Recomputing p-values needs the paper’s full text.

Verification

Claims the paper makes

We couldn’t retrieve this paper’s full text, so its claims and self-check weren’t run. The registry and citation checks still apply.

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

Citations

Cites

Show all 60 references

Research works printed but not linked: 20

  1. Allen D, 2006, PCWorld
  2. Armstrong M, 2009, Econom. J., 119, 270
  3. Arthur B, 1989, Econom. J., 99, 116
  4. 10.1145/800027.808439 · DOI
  5. Dutka B, 2009, PSXExtreme
  6. Eisenmann TR, 2006, Harvard Bus. Rev., 84, 92
  7. 10.1002/smj.935 · DOI · Paper page
  8. Farrell J, 1986, Amer. Econom. Rev., 76, 940
  9. Gawer A, 2008, MIT Sloan Management Rev., 49, 28
  10. Hasseldahl A, 2005, BusinessWeek.com
  11. Katz ML, 1985, Amer. Econom. Rev., 75, 424
  12. Kim R, 2007, San Francisco Chronicle
  13. Leheng Q, 2006, TechGate
  14. Parker G, 2009, Comm. Amp; Strategies, 17
  15. Schoenberger CR, 2008, Forbes
  16. Sheffield B, 2008, Game Developer, 15, 2
  17. Sinclair B, 2006, Gamespot
  18. Tirpak JA, 2007, Air Force Magazine, 90, 40
  19. Tiwana A, 2010, Internat. Statist. Rev., 21, 675
  20. Wen H, 2007, Gamasutra

Cited by

Sorted by citations

Items 301–325 of 325

Related

See all

Metadata

Authors
Anderson, E. G., Parker, G. G., & Tan, B.
Affiliations
  • The University of Texas at Austin (US)
  • Tulane University (US)
ORCID
Venue
Information Systems Research
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Published
2014-03
Volume
25
Issue
1
Pages
152-172
ISSN
  • 1047-7047 (ISSN-L)
  • 1526-5536
DOI
10.1287/isre.2013.0505
OpenAlex
W3123202234
Cited by
326
References
60
Citations by year
2026: 21 · 2025: 37 · 2024: 50 · 2023: 44 · 2022: 25 · 2021: 31 · 2020: 31 · 2019: 16 · 2018: 28 · 2017: 9 · 2016: 20 · 2015: 7 · 2014: 5
FWCI
32.41
Type
journal article
Language
en
Open access
Locations
  • Information Systems Research (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Innovation Diffusion and Forecasting
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Supply Chain and Inventory Management
Keywords
video game industry, product development strategy, monopoly, duopoly, winner-take-all markets

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review