Network platform competition such as those between Microsoft Windowsand Macintosh, between Blu-ray and HD-DVD, among Nintendo, PlayStationand Xbox, and among VISA, MasterCard, American Express and Discover havelong been a fascinating topic in the study of network economics and businessstrategy. These networks can all be characterized as two-sided, because theyall need two types of participants whose value of joining the networkdepends on the number of participants of the other type in the same network.In this book, the author identifies conditions under which a two-sidednetwork can overcome the so-called "chicken-and-egg" problem and achievesustainable growth, and under what conditions competing two-sided networkscan co-exist. The winning strategy of a two-sided network is not tomonopolize the production and distribution of its products, but to invitemore participants and distributors to foster a sustainable eco-system aroundits network platform. The book is addressed to researchers in network economicsand strategic management, as well as to business executives and strategicplanners in high-tech, financial, media and other two-sided markets.
Weaving a Two-Sided Network- Winning Strategies in Network Platform Competition
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Network platform competition such as those between Microsoft Windowsand Macintosh, between Blu-ray and HD-DVD, among Nintendo, PlayStationand Xbox, and among VISA, MasterCard, American Express and Discover havelong been a fascinating topic in the study of network economics and businessstrategy. These networks can all be characterized as two-sided, because theyall need two types of participants whose value of joining the networkdepends on the number of participants of the other type in the same network.In this book, the author identifies conditions under which a two-sidednetwork can overcome the so-called "chicken-and-egg" problem and achievesustainable growth, and under what conditions competing two-sided networkscan co-exist. The winning strategy of a two-sided network is not tomonopolize the production and distribution of its products, but to invitemore participants and distributors to foster a sustainable eco-system aroundits network platform. The book is addressed to researchers in network economicsand strategic management, as well as to business executives and strategicplanners in high-tech, financial, media and other two-sided markets.
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