producers in two-sided markets with network externalities. Each platform can choose the level of investment into a content … quality assurance (CQA) system and the level of advertising. Our model shows that network effects crucially determine the … multi-homing and producers are single-homing when the network effects obtained by producers are weak, while the opposite is …

Network effects that stem from network externalities have been theorized as the defining growth mechanism behind … platforms. The growing amount of participants in a platform market fuels a virtuous cycle of growth — a network effect. However … side to experience added value of increasing number of participants on the same or another side. We call them network …