Year: 2009
Type: preprint
Abstract: Platform competition is ubiquitous, yet its outcome is little understood.Theory models typically su¤er from equilibrium multiplicity-platforms might coexist or the market might tip to either platform.We use controlled laboratory experiments to study the dynamics of tipping in a class of games that included both markets with homogeneous and di¤erentiated platforms.When platforms are primarily vertically di¤erentiated, we …nd that even when platform coexistence is theoretically possible, markets inevitably tip to the e¢ cient platform.When platforms are primarily horizontally di¤erentiated, so there is no single e¢ cient platform, we …nd strong evidence of equilibrium coexistence.
Authors: John Morgan, Tanjim Hossain, Dylan Minor
Institution: Hong Kong University of Science and Technology
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: National Science Foundation
OpenAlex ID: W1517754679