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We present a theory for why it might be rational for a platform to limit the number of applications available on it. Our model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. When there are direct network effects,...
Persistent link: https://www.econbiz.de/10012906010
We present a theory for why it might be rational for a platform to limit the number of applications available on it. Our model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. When there are direct network effects,...
Persistent link: https://www.econbiz.de/10012906027
Persistent link: https://www.econbiz.de/10011436272
Managing the quality of complementary applications is vital to the success of a two-sided platform. While prior research has focused solely on restricting platform access based on a quality threshold, we compare three quality regulation strategies: 1) the platform excludes access to low-quality...
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